Structural Barriers to Emiratisation: Analysis and Policy Recommendations
Jasim Al-Ali
Submitted to the School of Management
Faculty of Business and Law
Victoria University
In Fulfillment of the Requirements for the Degree of
Doctor of Philosophy
2008
DECLARATION
“I, Jasim Al-Ali, declare that the PhD thesis entitled Structural Barriers to
Emiratisation: Analysis and Policy Recommendations is no more than 100,000 words
in length including quotes and exclusive of tables, figures, appendices, bibliography,
references and footnotes. This thesis contains no material that has been submitted
previously, in whole or in part, for the award of any other academic degree or
diploma. Except where otherwise indicated, this thesis is my own work”.
Signed:……………………………………
Date:………………………………………
ii
ACKNOWLEDGMENTS Praise be to Allah, the Glorious, without whose help none of this work would
have been possible.
The author wishes to express his deep and sincere appreciation to Professor
Michael Muetzelfeldt, for his valuable advice, patience and unfailing guidance. The
author is deeply and forever grateful to him. Warmest gratitude is also acknowledged
to my co-supervisor, Dr. Himanshu Shee for his insightful suggestion, statistical
support, comments and untiring support. The author also wishes to extend his warm
thankfulness to Mr. Pat Foley for his never-ending statistical support and words of
encouragement. Special thanks to Dr. Karen Manning for her support, comments and
suggestions.
The author also wishes to extend his greatest thanks to all institutions who
supported and assisted this study in providing helpful illustrative and informational
materials for the purpose of this study. Special acknowledgement is also extended to
Chairman of Dubai Municipality Mr. Hussein Nasser Loutah. Special thanks to Mr.
Mohamed Jalfar, Mr. Abdul Hakim Belshalat and Mr. Humid Al-Merry, the Director
of the Human Resource for their contributions. The author acknowledges his lasting
indebtedness to Dubai Municipality for the financial support of this study. Without the
support of these people this thesis would be a more difficult journey. Thank you for
sharing the vision.
Finally, the author extends his warmest gratitude to his parents, brothers and
sisters, whose love and heartfelt encouragement have inspired him during the several
years he spent at Victoria University. The author is tremendously indebted to his wife
Jowhara whose patience, sacrifice, full understanding, and sincere companionship has
not only helped relieving the pain of three years homesickness, but also provided him
with the needed environment and aspiration to complete his work.
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Abstract
Structural Barriers to Emiratisation: Analysis and Policy Recommendations
Decades of rapid development on the Arabian Peninsula attracted numerous
migrant workers who now dominate the labour markets. In the United Arab Emirates,
expatriate workers take some 98 per cent of jobs in the private sector and 91 per cent
in the public sector; Emirati nationals have the few remaining jobs, yet also have a
high unemployment rate. The purpose of this research project is to identify the factors
that enhance placement and retention of UAE nationals in Dubai’s workplace and
propose a feasible strategy for greater job opportunities for UAE nationals and
achieve an increased workforce participation. This study employs a theoretical
framework based on three aspects of capital theory: human capital elements, that is,
education, skills, and experience; social capital factors, such as gender inequality,
nepotism and trust; and organisational capital variables, such as culture, English
fluency and human resource management (HRM).
Prior to conducting the main survey, two preliminary studies were conducted.
One study focused on an extensive literature search under capital theory to review
constructs and findings that are relevant to employment issues for UAE nationals and
identify means to address those issues. The second study comprised an exploratory
study of the views of 20 senior HR managers of statutory organisations in Dubai and
17 correct responses were received, with response rate of 85 per cent. Based on the findings
from the literature search and the exploratory study, 13 variables were identified that
have a significant impact on UAE nationals in the workforce. Based on these
variables, the main survey questionnaire was developed and distributed to 1500
employees in seven private and public sector organisations and 930 correct responses
were received, with response rate of 65 per cent. The results revealed five variables that
significantly differ in impact between the public and private sectors: training and
development, career development, English fluency, gender inequality, and trust. To
attract and retain Emiratis in public sector organisations, the variables of age, gender
inequality, trust, organisational culture and career development were found to be
significant; whilst in private corporations, trust, wasta (nepotism), organisational
culture and remuneration were important in attracting and retaining UAE nationals.
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This study concludes by using these results to recommend policies that enhance
Emirati workforce participation.
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TABLE OF CONTENTS Chapter 1 ........................................................................................................................ 1
Introduction .................................................................................................................... 1
1.1 Background to Research .......................................................................................... 1
1.2 Problem Statement ................................................................................................... 3
1.3 Purpose of Research ................................................................................................. 4
1.4 Research Questions .................................................................................................. 4
1.5 Importance of this Research .................................................................................... 4
1.6 Methodology ............................................................................................................ 5
1.7 Application of Findings ........................................................................................... 6
1.8 Location of Research ............................................................................................... 6
1.9 Limitations of Research ........................................................................................... 6
1.10 Implications of the Study ....................................................................................... 6
1.11 Structure of this Thesis .......................................................................................... 6
Chapter 2 ........................................................................................................................ 9
United Arab Emirates .................................................................................................... 9
2.1 History and Economy .............................................................................................. 9
2.2 Demographics ........................................................................................................ 11
2.2.1 Population Growth ...................................................................................... 12 2.2.2 Emirati Population Profile .......................................................................... 13
2.3 Education ............................................................................................................... 14
2.3.1 Schools ........................................................................................................ 14 2.3.2 Higher Education ........................................................................................ 16
2.4 Religious Observances ........................................................................................... 19
2.4.1 Islamic Observances ................................................................................... 19 2.4.2 Islamic Law and Finance ............................................................................ 20 2.4.3 Globalisation ............................................................................................... 21 2.4.4 International Overview ............................................................................... 21
2.5 UAE Culture .......................................................................................................... 22
2.5.1 Traditions .................................................................................................... 22 2.5.2 Social Change ............................................................................................. 23 2.5.3 Dysfunction of Change ............................................................................... 25
2.6 Summary ................................................................................................................ 26
Chapter 3 ...................................................................................................................... 29
Literature Review: Establishing the Context for Emiratisation ................................... 29
3.1 Gulf Cooperation Council ...................................................................................... 29
3.1.1 Role of the GCC .......................................................................................... 30 3.1.2 Non-national Employment .......................................................................... 30
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3.2 Unemployment Among GCC Nationals ................................................................ 32
3.2.1 Unemployment and Economic Statistics .................................................... 33 3.2.2. Localisation: GCC Nationals Employment Strategies ............................... 35 3.2.3 Localisation Factors .................................................................................... 36 3.2.4 GCC Responses to Issues ............................................................................ 40 3.2.5 Bahrain’s Response to Localisation ............................................................ 43 3.2.6 Summary ..................................................................................................... 44
3.3 Localisation in Selected Countries ......................................................................... 44
3.3.1. Localisation in Singapore and Malaysia .................................................... 45 3.3.2 China ........................................................................................................... 46 3.3.3 Summary ..................................................................................................... 46
3.4 Structure of UAE Labour Market .......................................................................... 47
3.4.1 Antecedents of Labour Market ................................................................... 47 3.4.2 Emergence of Women in Labour Force ...................................................... 48 3.4.3 Labour Market by Emirate .......................................................................... 49 3.4.4 Unemployment ............................................................................................ 49 3.4.5 Summary ..................................................................................................... 50
3.5 Challenge of Non-nationals to UAE Hegemony ................................................... 51
3.5.1 Social Impact .............................................................................................. 51 3.5.2 Cultural Impact ........................................................................................... 53 3.5.3 Economic Impact ........................................................................................ 54 3.5.4 Political Impact ........................................................................................... 55 3.5.5 Summary ..................................................................................................... 56
3.6 Emiratisation .......................................................................................................... 57
3.6.1 Barriers to Emirati Jobseekers .................................................................... 57 3.6.2 Barriers to Emirati Employment ................................................................. 58 3.6.3 Policies to Encourage Emirati Employment ............................................... 59 3.6.4 Implementing Emiratisation ........................................................................ 60 3.6.5 HR Strategies .............................................................................................. 62
3.7 Conclusion ............................................................................................................. 63
Chapter 4 ...................................................................................................................... 66
Conceptual Framework ................................................................................................ 66
4.1 Human Capital Theory ........................................................................................... 67
4.1.1 Overview and Definitions ........................................................................... 67 4.1.2 Economic Growth ....................................................................................... 67 4.1.3 Role of Education ....................................................................................... 68 4.1.4 Skills Development through Education ...................................................... 69 4.1.5 Training and Development ......................................................................... 71 4.1.6 Organisational Engagement ........................................................................ 73 4.1.7 Emirati Employment Issues ........................................................................ 75 4.1.8 Human Capital Summary ............................................................................ 76
4.2 Social Capital Theory ............................................................................................ 78
4.2.1 Overview and Definitions ........................................................................... 78 4.2.2 Trust ............................................................................................................ 80 4.2.3 Gender Inequality ........................................................................................ 82
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4.2.4 Wasta (Nepotism) ....................................................................................... 85 4.2.5 Family Influence ......................................................................................... 87 4.2.6 Social Capital Summary ............................................................................. 87
4.3 Organisational Capital Theory ............................................................................... 88
4.3.1 Overview and Definitions ........................................................................... 88 4.3.2 Civic Environment ...................................................................................... 89 4.3.4 Organisational Culture ................................................................................ 96
4.4 Theoretical Framework .......................................................................................... 98
4.4.1 Development of Constructs ......................................................................... 98 4.4.2 Development of Hypotheses ..................................................................... 102
4.5 Summary .............................................................................................................. 105
Chapter 5 .................................................................................................................... 107
Study Methodology and Phase 1 Report .................................................................... 107
5.1 Research Design ................................................................................................... 107
5.1.1 Quantitative and Qualitative Approaches ................................................. 108 5.1.2 Design Selection ....................................................................................... 110 5.1.3 Literature Review ...................................................................................... 111 5.1.4 Research Objective and Hypotheses Development .................................. 111
5.2 Research Administration ...................................................................................... 112
5.2.1 Ethics Committee Approval ...................................................................... 112 5.2.2 Participants’ Consent ................................................................................ 112 5.2.3 Anonymity and Confidentiality ................................................................ 112
5.3 Phase 1 and 2 Sample Selection ........................................................................... 112
5.3.1 Method ...................................................................................................... 113 5.4 Phase 1 and 2 Data Acquisition ........................................................................... 114
5.5 Phase 1 Key Informant Contributions .................................................................. 115
5.5.1 Participant Selection ................................................................................. 115 5.5.2 Questionnaire Processes ............................................................................ 115
5.6. Phase 1 Study Findings ....................................................................................... 116
5.6.1 Emiratisation policies ................................................................................ 116 5.6.2 Deterrents to Emiratis Seeking Jobs ......................................................... 117 5.6.3 Qualification Standards ............................................................................. 118 5.6.4 Barriers to Employment ............................................................................ 119 5.6.5 Hiring Emiratis .......................................................................................... 120 5.6.6 Retaining Emiratis .................................................................................... 120 5.6.7 On-the-job Training .................................................................................. 121 5.6.8 Working Conditions .................................................................................. 122 5.6.9 Cultural Issues ........................................................................................... 124
5.7 Phase 1 Results Discussion .................................................................................. 125
5.8 Conclusion ........................................................................................................... 126
Chapter 6 .................................................................................................................... 128
Study Methodology and Phase 2 Survey ................................................................... 128
6.1 Survey Instrument ................................................................................................ 128
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6.1.1 Questionnaire Design ................................................................................ 129 6.1.2 Questions ................................................................................................... 129 6.1.3 Measurement Principles ............................................................................ 132 6.1.4 Measurement of Items ............................................................................... 132 6.1.5 Construct of Variables .............................................................................. 139 6.1.6 Statistical Proof Applications ................................................................... 140 6.1.7 Questionnaire Presentation ....................................................................... 141
6.2 Pilot of Draft Questionnaire ................................................................................. 142
6.3 Phase 2 Survey Characteristics ............................................................................ 144
6.3.1 Selected Organisations .............................................................................. 144 6.3.2 Distribution and Collection ....................................................................... 145
6.4 Data Analysis ....................................................................................................... 146
6.4.1 Preparation of Data ................................................................................... 146 6.4.2 Statistical Analysis .................................................................................... 147
6.5 Conclusion ........................................................................................................... 149
Chapter 7 .................................................................................................................... 150
Data Analysis ............................................................................................................. 150
Factor and Descriptive Analyses ............................................................................... 150
7.1 Sample Population Characteristics ...................................................................... 150
7.1.1 Demographic Data .................................................................................... 151 7.1.2 Work Experience ...................................................................................... 152 7.1.3 Marital Status ............................................................................................ 153 7.1.4 Educational Achievement ......................................................................... 153 7.1.5 Occupational Classifications ..................................................................... 156 7.1.6 Remuneration ............................................................................................ 156
7.2 Factor Analysis .................................................................................................... 157
7.2.1 Appropriateness of Factor Analysis .......................................................... 158 7.2.2 Factor Analysis for Human Capital Components ..................................... 160 7.2.3 Factor Analysis for Organisational Capital Components ......................... 166 7.2.4 Factor Analysis for Social Capital Components ....................................... 172 7.2.5 Summary of Factor Analysis .................................................................... 177
7.3 Descriptive Statistics Analysis ............................................................................. 177
7.3.1 Descriptive Statistics for Human Capital .................................................. 178 7.3.2 Descriptive Statistics for Organisational Capital ...................................... 179 7.3.3 Descriptive Statistics for Social Capital ................................................... 183
7.4 Conclusion ........................................................................................................... 187
Chapter 8 .................................................................................................................... 189
Data Analysis ............................................................................................................. 189
Hypotheses Testing .................................................................................................... 189
8.1 Hypotheses and Tests ........................................................................................... 190
8.1.1 H1 Test ...................................................................................................... 190 8.1.2 H2 Test ...................................................................................................... 194 8.1.3 H3 Test ...................................................................................................... 195
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8.1.4 H4 Test ...................................................................................................... 197 8.1.5 H5 Test ...................................................................................................... 198 8.1.6 H6 Test ...................................................................................................... 199 8.1.7 H7 Test ...................................................................................................... 200 8.1.8 H8 Test ...................................................................................................... 201 8.1.9 H9 Test ...................................................................................................... 201 8.1.10 H10 Test .................................................................................................. 202 8.1.11 H11 Test .................................................................................................. 203
8.2 Hierarchical Regression Analysis ........................................................................ 204
8.3 Public Sector Analysis ......................................................................................... 205
8.3.1 H12 Independent Variable Organisational Engagement ........................... 208 8.3.2 H13 Independent Variable Training and Development ............................ 216
8.4 Private Sector Analysis ........................................................................................ 223
8.4.1 H14 Independent Variable Organisational Engagement ........................... 226 8.4.2 H15 Independent Variable Training and Development ............................ 233
8.5 Sector Comparison ............................................................................................... 240
8.5.1 Organisational Engagement ...................................................................... 241 8.5.2 Training and Development ....................................................................... 243 8.5.3 Tests Summary .......................................................................................... 246
8.6 Conclusion ........................................................................................................... 249
Chapter 9 .................................................................................................................... 251
Discussions, Recommendations and Conclusion ....................................................... 251
9.1 Research Overview .............................................................................................. 252
9.2 Research Question 1 Factors Influencing Emiratis’ Employability .................... 253
9.3 Research Question 2 Determine Sector-specific Factor Differences ................... 256
9.3.1 Human Capital .......................................................................................... 256 9.3.2 Organisational Capital .............................................................................. 261 9.3.3 Social Capital ............................................................................................ 264
9.4 Research Question 3 Characteristics of Emiratis’ Work Attitudes ...................... 267
9.4.1 Organisational Culture .............................................................................. 268 9.4.2 Trust .......................................................................................................... 271 9.4.3 Wasta ......................................................................................................... 273 9.4.4 Remuneration ............................................................................................ 274 9.4.5 Training and Development ....................................................................... 275 9.4.6 Age ............................................................................................................ 278
9.5 Research Question 4 Emirati and Non-nationals’ Work Attitudes ...................... 279
9.6 Summary of Research Outcomes ......................................................................... 281
9.7 Summary of Recommendations ........................................................................... 283
9.8 Limitations and Further Research ........................................................................ 288
9.9 Conclusion ........................................................................................................... 290
References .................................................................................................................. 292
Appendices ................................................................................................................. 320
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Appendix 1 ................................................................................................................. 321
Ethic Approval Letter ................................................................................................ 321
Appendix 2 ................................................................................................................. 322
Invitation Letter for Key Informants .......................................................................... 322
Appendix 3 ................................................................................................................. 323
Invitation Letter for Participants ................................................................................ 323
Appendix 4 ................................................................................................................. 324
Pilot Survey ................................................................................................................ 324
Appendix 5 ................................................................................................................. 330
Main Survey ............................................................................................................... 330
Appendix 5 ................................................................................................................. 337
Main Survey (Arabic Version) ................................................................................... 337
Appendix 6 ................................................................................................................. 342
Statistical assumptions tests ....................................................................................... 342
Appendix 7 ................................................................................................................. 345
Letters To organisations ............................................................................................. 345
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LIST OF TABLES Page Table 2.1: UAE populations by Sex and Nationality, 1975-2004……………… Table 2.2: Total Fertility Rates, Nationals and Non-nationals, 1985-2004……. Table 2.3: Student Population in Public and Private Schools, by Sex and Stage, 2004………………………………………………………….. Table 2.4: Public Education Indicators, by Emirate, 2004…………………….. Table 2.5:Enrolment in All-Higher Education Institutions, by Sex and Nationality, 2003-2004……………………………………………… Table 2.6:Higher Education Graduates, by Sex and Nationality, 2003-2004…. Table 2.7: Remittances of Non-national in UAE between the years 1975-2004. Table 3.1: National and Non-national Populations in the GCC countries, 2001/2002…………………………………………………………… Table 3.2: GCC Asian Non-national Population Origins………………………. Table 3.3: GCC Arab Non-national Population Origins……………………….. Table 3.4: GCC Countries Economic Performances, 1971-2001…………….... Table 3.5: Unemployment Growth Rates in the GCC Countries, 1974-2002…. Table 3.6: Issues Impacting Localisation………………………………………. Table 3.7: UAE Labour Characteristics and Populations, by Emirate, 2004…... Table 3.8: Actual and Targeted Numbers of Emirati Employees in the Financial Sector, 2003………………………………………………. Table 3.9: Factors Impacting Emiratisation……………………………………. Table 4.1: Categorising of Constructs and Scale Items……………………… Table 4.2: Development of Hypotheses………………………………………... Table 5.1: Deterrents to Emiratis Seeking Jobs………………………………... Table 5.2: Meeting Qualification Levels for Job Specifications………………. Table 5.3 Personal Attribute Barriers to Emiratisation………………………… Table 5.4: Evaluation of Applicant Characteristics……………………………. Table 5.5: Factors to Retain Emiratis in Employment…………………………. Table 5.6: Employee Satisfaction: Non-nationals and Emiratis……………….. Table 5.7: Employee Satisfaction: Non-nationals and Emiratis – Public Sector. Table 5.8: Employee Satisfaction: Non-nationals and Emiratis – Public Sector. Table 6.1: Pretested Scale Items, Sources and Cronbach’s Alpha……………... Table 7.1: Number of Survey Respondents……………………………………. Table 7.2: Age, Sector and Gender Distribution of Study Participants………... Table 7.3: Participants’ Work Experience, by Sector…………………………. Table 7.4: Marital Status of Respondents, by Sector…………………………... Table 7.5: Educational Attainment of Participants, by Sector…………………. Table 7.6: Source of Participants’ Tertiary Qualifications, Public Sector……... Table 7.7: Source of Participants’ Tertiary Qualifications, Private Sector……. Table 7.8: Occupation Classification, by Sector………………………………. Table 7.9: Emirati Remuneration, by Sector…………………………………… Table 7.10: Total Variance of Human Capital Components…………………… Table 7.11: KMO and Bartlett's Tests of Human Capital Components……….. Table 7.12: Human Capital: Comparison Analysis of Eigenvalues Components (PCA) with Corresponding Criterion Values from Parallel Analysis…………………………………………………... Table 7.13: Rotated Component Matrix of Scale Items for Human Capital…… Table 7.14: Mean and Standard Deviation for Human Capital Components…..
12 12 15 15 17 18 26 31 31 31 34 35 37 49 61 63 100 103 118 119 119 120 121 122 123 123 134 151 152 152 153 153 154 155 156 157 162 162 163 164 165
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Table 7.15: Total Variance of Organisational Capital Components…………… Table 7.16: KMO and Bartlett's Tests of Organisational Capital Components... Table 7.17:Organisational Capital: Comparison Analysis of Eigenvalues Components (PCA) with Corresponding Criterion Values from Parallel Analysis…………………………………………………… Table 7.18: Rotated Component Matrix of Scale for Organisational Capital….. Table 7.19: Mean and Standard Deviation for Organisational Capital Components……………………………………………………….. Table 7.20: Total Variance of Social Capital Components……………………. Table 7.21: KMO and Bartlett's Tests of Social Capital Components………… Table 7.22: Social Capital: Comparison Analysis of Eigenvalues Components (PCA) with Corresponding Criterion Values from Parallel Analysis……………………………………………………………. Table 7.23: Rotated Component Matrix of Scale for Social Capital…………... Table 7.24: Mean and Standard Deviation for Social Capital Components…… Table 7.25: Summary of Results of All Component Analyses………………… Table 7.26: Organisational Engagement Mean and Standard Deviation, by Sector……………………………………………………………… Table 7.27: Training and Development Mean and Standard Deviation, by Sector …………………………………………………………….. Table 7.28: Organisational culture Mean and Standard Deviation, by Sector… Table 7.29: Career Development Mean and Standard Deviation, by Sector….. Table 7.30: Remuneration Mean and Standard Deviation, by Sector…………. Table 7.31: English Fluency Mean and Standard Deviation, by Sector.………. Table 7.32: Gender Inequality Mean and Standard Deviation, by Sector……… Table 7.33: Trust Mean and Standard Deviation, by Sector…………………… Table 7.34: Social Justice Mean and Standard Deviation, by Sector………….. Table 7.35: Wasta Mean, Standard Deviation, by Sector……………………… Table 8.1 H1: Matrix Comparison of Means, Standard Deviations, Reliabilities and Correlations for Variables for H1 – H11…….. Table 8.2 H2: Capital Constructs, Mean, Standard Deviation, and Intercorrelation…………………………………………………. Table 8.3 H3: Significant Means of Defined Variables, by Sector……………. Table 8.4 H3: Nonsignificant Defined Variables, by Sector…………………... Table 8.5 H4: Capital Constructs, by Sector: Comparison of Means…………. Table 8.6 H5: Capital Constructs Tests, Chi-square Values, Degrees of Freedom and Difference in Proportions………………………… Table 8.7 H6: Educational Attainment, by Sector: Chi-square Values, Degrees of Freedom and Difference in Proportions……………………... Table 8.8 H7: Job Title by Sector: Chi-square value, Degrees of Freedom and Difference in Proportions………………………………………. Table 8.9 H8: Years of Work Experience, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions……………. Table 8.10 H9: Ages of Population, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions………………………. Table 8.11 H10: Gender of Population, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions…………………... Table 8.12H11: Mann-Whitney U Test of Education, by Sector……………… Table 8.13 H11: Statistics of Mann-Whitney U Test of Education…………… Table 8.14: H12, H13: Matrix Comparison of Descriptive Analyses for
167 167 168 169 171 172 172 173 174 176 177 178 179 180 181 182 183 184 184 185 186 192 194 196 196 198 199 199 200 201 202 202 203 203
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Variables for all Public Sector Constructs…………….. Table 8.15: Public Sector Model 1 Statistical Summary of Organisational Engagement ………………………………………………………. Table 8.16: Public Sector Model 1 Coefficient Regression, Organisational Engagement……………………………………………………….. Table 8.17: Public Sector Models 1 & 2, Statistical Summary of Organisational Engagement………………………………………... Table 8.18: Public Sector Model 2: Coefficient Regression. Organisational Engagement……………………………………………………….. Table 8.19: Public Sector, Models 1, 2, & 3 Organisational Engagement Summary…………………………………………………………... Table 8.20: Public Sector Coefficient Regression: Organisational Engagement. Table 8.21: Public Sector, Hierarchical Regression Analysis for Organisation Engagement………………………………………………………... Table 8.22: Public Sector Model 1 Statistical Summary of Training and Development………………………………………………………. Table 8.23: Public Sector Model 1 Coefficient Regression, Training and Development………………………………………………………. Table 8.24: Public Sector Models 1 & 2, Statistical Summary of Training and Development………………………………………………………. Table 8.25: Public Sector Model 2, Coefficient Regression, Training and Development………………………………………………………. Table 8.26: Public Sector Models 1, 2 & 3, Statistical Summary of Training and Development………………………………………………….. Table 8.27:Public Sector Coefficient Regression: Training and Development... Table 8.28: Public Sector, Hierarchical Regression Analysis for Training and Development………………………………………………………. Table 8.29 H14, H15: Matrix Comparison of Descriptive Analyses for Variables for all Private Sector Constructs…………….. Table 8.30: Private Sector Model 1 Statistical Summary of Organisational Engagement………………………………………………………… Table 8.31:Private Sector Model 1 Coefficient Regression, Organisational Engagement………………………………………………………… Table 8.32:Public Sector Models 1 & 2, Statistical Summary of Organisational Engagement………………………………………… Table 8.33: Private Sector Model 2: Coefficient Regression. Organisational Engagement……………………………………………………….. Table 8.34: Private Sector, Models 1, 2, & 3 Organisational Engagement Summary…………………………………………………………... Table 8.35: Public Sector Coefficient Regression: Organisational Engagement. Table 8.36: Private Sector, Hierarchical Regression Analysis for Organisation Engagement………………………………………………………... Table 8.37: Public Sector Model 1 Statistical Summary of Training and Development………………………………………………………. Table 8.38: Private Sector Model 1 Coefficient Regression, Training and Development………………………………………………………. Table 8.39: Private Sector Models 1 & 2, Statistical Summary of Training and Development………………………………………………………. Table 8.40:Private Sector Model 2, Coefficient Regression, Training and Development………………………………………………………..
207 209 209 210 211 212 213 215 217 217 218 218 219 220 222 225 227 227 228 228 229 230 232 234 234 235 235
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Table 8.41:Private Sector Models 1, 2 & 3, Statistical Summary of Training and Development…………………………………………………... Table 8.42: Private Sector Coefficient Regression: Training and Development. Table 8.43: Private Sector, Hierarchical Regression Analysis for Training and Development………………………………………………………. Table 8.44: Sector Comparison, Hierarchical Regression Analysis for Organisational Engagement………………………………………... Table 8.45: Public and Private Sectors, Hierarchical Regression Analysis for Training and Development………………………………………… Table 8.46: Summary of Hypothesis Testing…………………………………...
236 237 239 241 244 247
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LIST OF FIGURES
Page Figure 1.1: Outline of thesis…………………………………………………. Figure 4.1: Theoretical Framework for Emiratisation below………………... Figure 5.1: The methodology, composed and finalised……………………... Figure 6.2: Quantitative Data Analysis Process……………………………... Figure 7.1: Eigenvalue Plot for Scree Test Criterion for Human Capital Components……………………………………………………… Figure 7.2: Eigenvalue Plot for Scree Test Criterion for Organisational Capital Components……………………………………………... Figure 7.3: Eigenvalue Plot for Scree Test Criterion for Social Capital Components……………………………………………………… Figure 7.4: Significant Differences between Variables, by Sector………….. Figure 8.1: Public Sector Model 1 Hierarchical Regression, Independent variables (demographic variables) on dependent variable (organisational engagement)…………………………………….. Figure 8.2: Public Sector Models 1 & 2 Hierarchical Regression, Independent Variables (Social Value Variables) on Dependent Variable (Organisational Engagement)………………………….. Figure 8.3: Public Sector Models 1, 2 & 3, Hierarchical Regression, Independent Variables (Organisational Value Variables) on Dependent Variable (Organisational Engagement)……………… Figure 8.4: Hierarchical regression – independent variables (demographic, social and organisational value variables) on dependent variable (organisational engagement) in the public sector………………... Figure 8.5: Public Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (training and development)……………………………. Figure 8.6: Private Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (Organisational Engagement)………………………….. Figure 8.7: Private Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (training and development)…………………………….
7 99 110 145 165 171 176 187 209 210 212 216 222 233 240
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Definition of Terms
For the purpose of this study, the following key terms are defined:
Emiratisation is a structural process whereby the government of the United
Arab Emirates (UAE) requires working visas of three years for all non-
nationals. Some quota and financial restrictions are placed on the employment
of expatriate workers for certain skills and professions. The government has
policies and programs to encourage UAE nationals to achieve competency in
these targeted professions and skilled jobs; either by the national’s direct work
readiness, or through expatriate replacement with on-the-job mentoring..
Emiratisation aims to continuously develop the skills and knowledge of UAE
nationals’ workers to maintain UAE’s pre-eminent position among the world’s
economies.
Gulf Cooperation Council (GCC): is a long-standing regional organisation
comprising Saudi Arabia, Kuwait, Oman, Qatar and the UAE. It coordinates
economic and social development of its members.
Tanmia: Acronym for National Human Resource Development and
Employment Authority, responsible for skills development and employment
for the national labour force.
UAE nationals, Emiratis: Citizens of the UAE, holders of the UAE passport.
UAE non-nationals, non-nationals: Guest workers who are not citizens of
the UAE and who hold working visas of three years or less.
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LIST OF ABBREVIATION
HRM: Human Resource Management
PCA: Principal Component Analysis
CFA: Common Factor Analysis
KMO: Kaiser-Meyer Olkin
SD: Standard Deviation
VIF: Variance Inflation Factor
T: Tolerance
SE: Standard Error of the Coefficient
sr: Semi-partial correlation
β: Standardised Regression Coefficients
b: Unstandardised Regression Coefficients
Sig: Statistical Significance
CEDAW: Convention on the Elimination of All Forms of Discrimination against
Women
Chapter 1
Introduction
Economic development of oil resources in the Arabian Gulf over the past thirty
years required millions of expatriate workers in construction of facilities and
infrastructure. As the societies developed, the construction workers were joined by
skilled and professional workers as key components of the labour force of modern
economies. In the United Arab Emirates, an extreme example of this situation,
expatriate workers comprise 90 per cent of the workforce, whilst Emirati nationals
find difficulty accessing work in this intense, highly skilled work environment. The
purpose of this research is to identify factors to improve Emirati participation,
studying Dubai’s workplaces as examples of the future trend in UAE employment.
1.1 Background to Research Emiratis are a minority in their own country, comprising two of every ten in the
population, and just one of ten workers. UAE nationals contribute only nine per cent
of employees in the public sector and one per cent in the private sector, yet they have
a comparatively high unemployment rate. This recurrent unemployment occurs due to
oil exploitation, causing a massive influx of resources that largely bypassed the social
and economic development of Emiratis and now, in a single generation, imposes a
world-class economy upon traditional Arab lands (Al-Qudsi 2006).
Due to windfall oil rents, UAE experienced two major economic and social
changes that include an initial economic surge from 1974-1975 to the early 1980s, and
a period of negative growth due to oil price deflation during the late 1980s and 1990s.
For the first expansionary period, the UAE government developed social
infrastructure, including generous welfare systems, and embarked on a large public
investment program in infrastructure, utilities and basic industries (Al-Qudsi 2006).
With a small indigenous population, largely unskilled, non-national workers were
brought in from other Arab countries and Asia (Taryam 1987). The achievement was
a stable, prosperous and highly developed country equal to the world’s major
economies.
The UAE maintained an open-door policy to attract non-national labour from
1973, and the policy plays an important role in the development and rapid
1
diversification of the economy from oil production into service industries. Non-
nationals were employed for their diverse skills as well as their labour, and as the
country moves through its economic development, UAE continues to attract
commensurate skilled workers and professionals.
At mid-century, there was little development on the Arabian Peninsula, and no
standardised education. In 1962, the area which was to become UAE had just 20
schools and less than 4,000 students, most of them boys (Taryam 1987). Upon
federation in 1971, education was a high priority and since then all UAE children are
entitled to a free public education (Rashid 2006). However, as universal education is a
recent phenomenon, a minimum of a generation was necessary before the skills and
knowledge that UAE required for its citizens’ employability in its world-class
economy started to flow into the workforce (Taryam 1987; Ministry of Planning
1975-1980). Consequently, non-nationals assumed work in which they have a
comparative advantage: university professors, journalists, teachers, judges,
administrators and construction workers. In addition, non-nationals occupied most
jobs that required both high technical skills and fluency in English, and low skilled
jobs in the services and household sectors (Abdelkarim 2001b; Girgis 2002).
A further deterrent to employment was the relatively sudden arrival of a
bourgeois class in the Gulf Cooperation Council countries, with their radically
improved living standards and a propensity for lavish consumption. Many families
aspired to lifestyles that embraced large apartments, domestic servants and travel
(Taryam 1987). The massive construction projects across the oil-bearing region did
not attract local employment, due to harsh environmental conditions and the low
wages acceptable to millions of unskilled workers from the Indian sub-continent, a
traditional source of labour for Arabs. Also, UAE has a Bedouin society comprising
three broad categories: urban, nomadic and rural. Tradition dictated that the first two
categories were unable to adjust to manual labour; further, the position of women in
this society precluded them from a large range of occupations where the sexes
intermingled (Taryam 1987). Emiratis greatly prefer public sector employment with
its generous pay and conditions and an Islamic working environment, where
graduating Emiratis were automatically accepted. The private sector, on the other
hand, was a relatively new phenomenon and a challenge for UAE nationals with its
2
English speakers, advanced technical skills, experienced workers, and very long
working hours (Abdelkarim 2001b; Guang 2002).
During the last half-century, delays in the introduction of appropriate
immigration controls and labour legislation allowed a massive inflow of cheap labour
which was abandoned in the country at the end of a project or contract (Taryam
1987). Succeeding waves of itinerant male workers, generally from non-oil producing
Arab countries and the southern Asian countries, were attracted by the GCC’s living
standards and political stability, adding to a gender imbalance skewed heavily toward
males. Without early government intervention to manage the impact of millions of
non-nationals on a small population, this, and the resultant gender imbalance became
a long-term contentious issue of alienation of Emiratis in their own country.
Nevertheless, for all these structural dysfunctions of a rapidly developing
society, UAE nationals enjoy high incomes, continuing high economic growth, a
stable environment and a lifestyle that was completely unforeseen in 1960.
1.2 Problem Statement
UAE nationals’ increased workforce participation is critical to the country’s
growth. Decision makers concerned with the country’s future direction as a
commercial hub are overwhelmingly short-term non-nationals who are concerned
only with productivity under their particular watch. For continued expansion and
diversification of its oil-based economy, UAE needs to quickly develop strata of
commercial leaders and the supply of qualified and committed ranks of industry
professionals in finance, management, corporate governance, human resource
management, IT, marketing accounting, and the paraprofessionals who support
corporate activities.
As the private sector is already subject to pro-national labour policies, namely
Emiratisation, further restrictions and enforcement may prove counterproductive if
indeed the barriers are found to be predominantly elsewhere. Extant research on
unemployment for GCC nationals is to date generally qualitative, constrained by its
placement in rapid economic development, and of a small scale. Findings from these
specific instances in the literature are thus open to argument based on the state of the
economy; relevant localisation decrees from country to country, definitions of
employability, and the perceptions of stakeholders (Abdelkarim 2001b).
3
This research is directed to quantitative analysis across a broad spectrum of large
corporations in both the private and public sectors. By this means it aims to identify
structural, practical and perceived barriers to Emiratisation – asking the questions,
which in stakeholders views, define factors critical to Emiratis’ engagement with their
employers or potential employers.
1.3 Purpose of Research The objective of this study is to identify variables under the constructs of human
capital, organisational capital and social capital and to propose feasible strategies for
greater job opportunities for UAE nationals. The aims of this study are:
• Investigate human, organisational and social barriers to the engagement of
UAE national employees with their employers, in the public and private
sectors
• Identify differences between public and private sector employees, based on
variables of these constructs
• Develop strategies and policy framework to enhance employability in these
two sectors.
1.4 Research Questions The prime research question is as follows:
Identify factors impacting the employability of Dubai’s UAE nationals.
This question is further explicated by the following sub-questions:
• Determine sector-specific differences for a given factor.
• Identify characteristics of Emiratis’ work attitudes.
• Determine differences between UAE nationals and non-nationals
work attitudes.
1.5 Importance of this Research In addressing the research question: Identify factors impacting the employability
of Dubai’s UAE nationals. This research is important for a number of reasons:
• Concern regarding the saturated and hence limited future employment
opportunities in the government sector; the private sector is of paramount
importance to the country’s socio-economic development. In view of the
4
government’s liberalisation policies, and in particular the privatisation
program, it is significant to explore these issues and elicit feedback from
Emirati employees.
• There is a disconnect between the rhetoric of cultural transformation and
high career achievement, and reality. UAE national employees view
Emiratisation with scepticism.
• As an employer, Dubai government demands greater labour flexibility by
reducing numbers of job classifications, appointment and promotion on
merit, and performance-driven reward systems. It is therefore crucial for
public employers to understand the impact of this change and the effects on
the morale and the productivity of their staff.
• Human resources develop countries. The commitment of the workforce
and the engagement with the aims and targets of their organisations are
factors critical to the success of the corporation in the long term. Only
Emiratis can give the longitudinal support and commitment that
corporations, and in fact, all organisations need to survive and prosper.
This is because three year contracted non-nationals can only perform a
consultancy or a work-related role; they are useful in a rapid development
phase, but of reduced value when implementing long term strategies.
Emiratis are the best long-term resource, provided that they have
commitment, skills and corporate knowledge.
1.6 Methodology Prior studies on Emiratisation were from an external perspective by third party
researchers using qualitative methodology. This research however uses a pilot survey
followed by a quantitative survey. Results from the pilot survey were used to establish
the design for the main questionnaire. The objective of two-phase exploratory design
is to use the results of the first mixed method (qualitative and qualitative) to develop
or inform the second method (quantitative) (Greene et al. 1989). Phase one comprised
email contact with key informants (20 senior Dubai managers knowledgeable
regarding Emirati employment), and phase two consisted of a subsequent
questionnaire distributed to all 1500 respondents. The methodology of this research is
discussed in Chapters 5 and 6.
5
1.7 Application of Findings This research has immediate application for both sectors within Dubai
organisations, and to a lesser extent in organisations in other states such as Abu
Dhabi, Sharjah, Ras Khaimah, Al Fujairah and Ojman. It may also give grounds for
further research.
1.8 Location of Research Research is conducted in Dubai with seven different organisations. Five
organisations came from the private sectors and two from the public sectors. The
research is from the perspective of UAE national employees, as the research will be
used to identify variables that have a significant impact of their performance in the
workforce in UAE.
1.9 Limitations of Research The study, as other research, has a number of limitations. First, the approach
chosen for the methodology was a quantitative data analysis based on sample
responses from seven organisations only. Inclusion of samples from more
organisations would be more representative of the population. Second, the
conceptual framework of the study was based on three capital constructs: human,
organisational and social. All these constructs are internal to the organisations.
Inclusion of factors external to the organisations may influence the interactions of
variables and show some changes in the results. Limitations of this research are
discussed in Chapter 9.
1.10 Implications of the Study The findings of this study have policy implications for various organisations in
the public and private sectors, and universities. Soliciting feedback from UAE
national employees regarding Emiratisation assists employers with accurate
information for Emiratisation applications. Further, UAE organisations can utilise the
results to raise an awareness of employment opportunities through job fairs and
possibly the establishment of an in-house career counselling and placement centre.
The implications of this research are discussed in Chapter 9.
1.11 Structure of this Thesis
This project identifies the role of capital theory through its three constructs with
UAE nationals in the Dubai workforce. The thesis covers first, a background of UAE
and the terms of this study, then a discussion of extant theory, the research
6
methodology, followed by the results and analysis of the findings. There is also a
chapter discussing the implications and conclusions of the research, suggesting ways
forward and further research. The arrangement for the chapters is shown below at
Figure 1.1 Outline of Thesis.
Figure 1.1: Outline of thesis
Chapter 1 introduction
to study
Chapter 2United Arab
Emirates
Chapter 4 Conceptual Framework
Chapter 5 Study
Methodology and Phase 1
Report
Chapter 6 Study
Methodology and phase
2 Survey
Chapter 7Data
analysis
Chapter 8 Hypotheses
testing
Chapter 9 Discussion, Recommendation and
Conclusion
Chapter 3 Literature review: Establishing the
Context for Emiratisation
Chapter 1 provides the background to the research and sets a foundation on why
the study was conducted. A clear description of the workforce in UAE is added so that
the reader can understand the problems that UAE nationals face in the workforce and
the environment of the research. There is also a brief discussion on the significance
of the study, and its limitations are identified.
Chapter 2 documents the emergence of UAE as a well-recognised nation, and
discuss the rapid social and economic development that is still taking place to achieve
this distinction. Characteristics of the country, its demographics and education
structures relevant to this thesis are then discussed, followed by an examination of the
roles played by Islam and the interlinked Arab culture.
Chapter 3 reviews the results found in previous studies, and demonstrates their
relevance to the aims of this study. This chapter discusses the effect of oil rents on G
CC countries’ economies, and particularly on their demographics, from the 1973 oil
price adjustments.
7
Chapter 4 presents a theoretical framework based on human capital, that is,
education, skills, and experience; social capital, such as gender inequality, wasta
(nepotism) and trust; and organisational capital, such as culture, English fluency and
human resource management.
Chapter 5 presents the methodology and findings of the exploratory phase. The
aim of this chapter is to probe the endogenous themes that contribute to the differing
job markets in UAE, that of nationals and non-nationals, and to test findings in the
literature leading to Emirati outcomes of increased job uptake and job continuance.
Chapter 6 describes the methodology chosen for the main survey, the research
process followed, its justification and limitations. A description of the methodology of
data collection and analysis is also presented.
Chapter 7 commences the analysis for the descriptive quantitative analysis. The
objectives of factor analysis, and its relevance in this research are explored, together
with the selection of methodology for factor extraction to gain the related variables.
The remainder of the chapter concerns statistical analyses, particularly differences
between Emirati employment in the two sectors, and the interpretation of the results.
Chapter 8 presents the data analysis by setting and testing 15 operational
hypotheses developed from the construct variables. The statistical methodology is
described for testing each of the first 15 hypotheses, and then the test results reported.
Chapter 9 discusses the key findings from the quantitative results and links these
to the existing literature. The implications, recommendations and limitations of the
research are presented along with some recommendations for future research.
8
Chapter 2
United Arab Emirates
Non-nationals dominate in the UAE population and especially in the country’s
labour market. The antecedents of this dominance reach back through UAE
sovereignty and, to a certain extent, reflect the current mix of nationalities. The
purpose of this chapter is to trace the emergence of UAE as a well-recognised nation,
and discuss the rapid social and economic development that is still taking place to
achieve this distinction. Characteristics of the country, its demographics and
education structures relevant to this thesis are then discussed, followed by an
examination of the roles played by Islam and the interlinked Arab culture. The third
section describes on the cultural impact on business activity in the country, noting the
discordance between global financial structures and the Islamic prohibition on the
practice of charging interest, thus impacting the employment of devout Emiratis
within financial institutions. In the final section, the study will illustrate the effects of
modernisation or globalisation on both the culture and society of the UAE.
2.1 History and Economy
Situated on the north east coast of the Arabian Peninsula, the United Arab
Emirates shares borders with the Sultanate of Oman and Saudi Arabia. It has a total
area of 83,600 square kilometres, and comprises three geographical areas, the Arabian
Gulf coast, a mountainous region to the north east, and desert. The desert
predominates at 80 per cent of the country’s area, with summer average temperatures
at 41degC at the coast and higher deeper into the southern desert (Hurreiz 2002).
Sheikh Zayed, UAE’s first president, stated that ‘... a people that does not
understand its past, and does not draw the correct lessons from it, will not be able to
deal with the challenges of the present and the future’ (Al-Ahed et al. 2004, p. 260).
The UAE comprises a federation of seven Emirates: Abu Dhabi, Dubai, Sharjah,
Ajman, Umm-al-Quwain, Ras al-Khaimah and al-Fujairah. The federation of seven
emirates was formerly known as the Trucial States, a title derived in the 1850s from a
Perpetual Treaty of Maritime Truce between several Emirs and the British. As part of
the treaty, the United Kingdom accepted accountability for the Arabs’ non-national
9
affairs and external defence, while agreeing not to interfere in their internal
relationships.
Given the Gulf’s abundance of oysters and shallow seas, pearling was the
region’s primary economic activity for the best part of a century. The pearling
industry gave rise to support industries such as boat-building in Dubai and Umm al-
Quwain, and the greater wealth to the region allowed development of new industries,
examples being weaving and tailoring (Heard-Bey 1982). However, by the early
1930s the pearling industry declined due to a combination of worldwide depression
and increasing competition from Japanese cultured pearls (Fenelon 1973). The
discovery of oil, its production from 1962 and the oil price rises from the 1970s were
the catalysts for the merger of the seven Emirates.
Federation: The move to federation began in February 1969 when Sheikh Zayed
of Abu Dhabi and Sheikh Rashid al-Maktum of Dubai agreed to merge the two
emirates into Al-Ittihad al-Thuna’, a state governing foreign affairs and immigration,
security, and social services. The United Arab Emirates, with Abu Dhabi, Dubai,
Sharjah, Ajman, Umm-al-Quwain and al-Fujairah, was proclaimed on 2 December
1971 with Sheikh Zayed as its president and Abu Dhabi as its capital (Codrai 1990;
Davidson 2005; Taryam 1987; Tomkinson 1975). Ras al-Khaimah joined the
federation later in February 1972 (Held 2006).
Economy: Oil moved the UAE from a traditionalist economy into arguably the
world’s wealthiest country with a 2005 per capita income of Dh107,164 ($A35,432)
(Salama 2006). This was achieved with political stability intact, provision of generous
social services and a remarkable pace of economic development. The greatest
investment is in social services, with the development of full health care and
education systems for the UAE population, Emiratis and non-nationals, and the
concomitant creation of job opportunities. However, there is a disparity between the
oil-rich emirates: Abu Dhabi, Dubai, as modern city-states together with Sharjah; and
the other emirates, which because they are sparsely populated, do not maintain the
same pace of economic development. This is partly the result an inability to diversify
from oil into other industries to assist a wider industrial platform (Al-Oraimi 2004).
UAE is, nevertheless, a prosperous country, built on oil and gas exploitation, and with
plans for a time when oil production slows. Recent diversification strategies are
coming to fruition, with a move into technological and tourist-based ventures,
10
although Al-Oraimi (2004) argues that the country is too small to achieve a truly
diversified economy.
This point in UAE’s economic migration from a traditionalist country is crucial
for its continued development. The country is developing swiftly and it appears that
this rate can be sustained if civil infrastructure can keep pace with its physical
counterpart (UAE Government 2007). The country’s population is highly
multicultural, southern Asians, Arabs, UAE nationals and others. The rising price of
petrochemicals underpins this development; production of oil may increase and gas,
the future driver of the economy, is also produced. Diversification comes from
services growth, including finance, tourism and retail.
UAE is an extreme example of globalisation, as only a small fraction of its
population is nationals, and this is a matter of a global workforce serving a global
population. UAE embraced globalisation as the sole means to first develop its oil and
then the country itself. However, it is hostage to the forces of globalisation, an
itinerant workforce and therefore customer base, insufficient knowledge of the rapid
changes occurring at every level of UAE’s society and businesses, the unpredictability
of the world’s financial focus and therefore the type of competition. UAE nationals, as
citizens of the country, must adapt quickly to keep pace with globalisation,
particularly its mores of English, finance, trade and lifestyle. As Arabs, they have a
proud tradition to maintain, including Muslim tenets.
To date, UAE’s the human resources for public services are largely supplied by
non-nationals; for the private sector, workers are almost entirely foreign labour. The
central issue for this thesis is to develop the capacity of Emiratis to contribute to
sustainable development in UAE. In the next section, the diversity of the UAE
population and its effect on social structures are discussed.
2.2 Demographics
In this section, factors that impact Emirati employment are discussed: population
growth, population structures, and labour force disparities.
11
2.2.1 Population Growth
Shortly after federation, in 1975, UAE’s population was estimated at 557,887
(Mahgoub 1999). Since then it experienced a very high population growth through
imported labour and to a lesser extent, a high birth rate, see Table 2.1 below.
Table 2.1: UAE populations by Sex and Nationality, 1975-2004
UAE nationals Non-national Total Year Male
Thous. Female Thous.
Total Thous.
Male Thous.
Female Thous.
Total Thous.
Male Thous.
Female Thous.
Total Thous.
1975* 105 97 202 281 75 356 386 172 558 1980 151 140 291 569 182 751 720 322 1,042 1985* 202 194 396 693 290 983 895 484 1,379 1995 297 290 587 1,310 514 1,824 1,607 804 2,411 2004 464 442 906 2,465 949 3,414 2,929 1,391 4,320
*official census figures; other years are Tanmia estimates Source: Human Resource Report, 2005, p. 9
Table 2.1 shows the population growth in the thirty years from 1975 to 2004,
with UAE nationals recording a population increase of approximately 4.5 times (from
202,000 to 906,000) and non-nationals a near-tenfold increase (0.36 million to 3.4
million).
Fertility Rates: Tanmia (2005), the National Human Resources and Employment
Authority, estimates that the total 2004 UAE population was around 4.3 million, with
79 per cent non-nationals, and a high population growth of around 4 per cent. The
population growth is aided by births, illustrated at Table 2.2.
Table 2.2: Total Fertility Rates, Nationals and Non-nationals, 1985-2004
Year 1985 1995 2004 UAE nationals 7.2 5.2 4.6 Non-nationals 3.9 2.6 1.9 Total 4.8 3.2 2.4
Source: CLMRI, Tanmia (2005)
Total fertility rates are defined as the average number of children per woman
during her child-bearing years (usually between ages 15-49 years). Table 2.2 shows
that from 1985 to 2004, there was a 50 per cent drop in fertility rates for the total
population and 57 per cent for the UAE national population. In 1985 the average
number of children per Emirati woman was 7.2 and it dropped to 4.6 in 2004. This
may reflect general world trends in falling fertility rates, especially in developing
12
countries (Tanmia 2005). Other factors concerning Emirati women include cultural
changes, which include delayed childbearing, and access to higher education;
workforce participation; and increasing family incomes also impact fertility rates.
Given the continuation of these factors, fertility rates for Emirate women will fall
further (Tanmia 2005). This is an issue of modernisation, as the role of Arab women
changes. The traditionalist lifestyles of the previous generations demanded high birth
rates to maintain family and tribal status in the frequently violent peninsula. Now, the
focus has widened to defending the country in an economic sense, and the
participation of all Emiratis is required through the government’s focus on its human
capital. Further, women are emerging as the majority by numbers in higher education
and qualifying in a range of professions, discussed at Section 2.3. They are moving
into the workforce to earn a living, and to begin a career.
Workforce Composition: Of the 1,390,000 females in UAE in 2004, less than
one third of the total population, just 442,000, were Emirati, a mere ten per cent of the
total population. There were 426,000 females in the UAE workforce, either in a job or
seeking work; consisting of 345,000 non-national women (13% of the total UAE
workforce) and 71,000 UAE national women (2.5% of the total workforce and a
quarter of whom were looking for work). On the other hand, there were 183,000 UAE
national males in the workforce (6.7% of the total UAE workforce, and 8.2%
unemployed) (Tanmia 2005). The rate of UAE nationals’ unemployment is increasing
sharply, with 29,000 UAE nationals registered as unemployed in 2004; see Section
3.4.4 (Elhage et al. 2005; Tanmia 2005).
2.2.2 Emirati Population Profile
The UAE nationals’ age profile reflects the high birth rates and is significantly
skewed to those less than 15 years of age, with 45.6 per cent aged from 0 – 14 years.
The age profile of the non-national population under 15 years remained constant over
the past decade. UAE’s high gender ratio (males to females) is a reflection of the
decades-long influx of largely male foreign labour. In 1985, the total UAE population
gender ratio was 1.8:1 and by 2004 was 2.1:1 and rising. The gender structure of
Emiratis reflects a natural society, at 1.04:1 in 1985 and similarly in, 2004, 1.05:1
(Tanmia 2005). However, as noted, the greater number of non-nationals in the
population skews the total population gender ratio, so that the ratio for non-nationals
went from 2.4:1 in 1985 to 2.6:1 in 2004 (Rashid 2006, p. 1). The gender ratio,
13
arguably the highest in the world, is of great concern to Emiratis who find themselves
a minority of one of every five of the population. Whilst this is a factor of the
workplace and public places, there is concern that the use of south Asian servants at
home degrades the values and mores of a traditional upbringing for the children if the
mother is pursuing a career.
Although Emiratis have an average gender ratio, there are significant differences
between the number of national men and women involved in higher education. The
following education section presents the pre-oil and post-oil exploitation and its effect
on the country.
2.3 Education
Before the discovery of oil, as noted, there was little development on the
Arabian Peninsula, and no standardised education. In 1962, when oil production
started in Abu Dhabi, the country had just 20 schools for less than 4,000 students,
most of them boys (Taryam 1987). Upon federation in 1971, with growth to 28,000
students, education was a high priority for the first UAE President, Sheikh Zayed bin
Sultan Al Nahyan, who declared: ‘Youth is the real wealth of the nation’ (Rashid
2006, p.1). The UAE supports all children with free public education from primary
school through to college and university. There is also an extensive private education
sector, which now accounts for around 40 per cent of the student population.
2.3.1 Schools
Today, every village in the UAE has at least its own primary school, and a
number of secondary schools in the cities offer boarding facilities to ensure that all
citizens have access to education. In 2004 there were a total of 1,207 schools in the
country, 755 public schools (62.5%) and 452 private schools (37.5%). Table 2.3
shows the relevant student percentages.
14
Table 2.3: Student Population in Public and Private Schools, by Sex and Stage, 2004
Sector Sex Pre-school Primary Secondary Total
Num
ber
All Schools%
Num
ber
All Schools%
Num
ber
All Schools%
Num
ber
All Schools%
Private Male Female Total
10,896 11,323 22,219
10.2 10.5 20.7
101,884 102,916 204,800
23.8 24.1 47.9
29,505 35,690 65,195
28.8 35.0 63.8
142,285 149,929 292,214
22.3 23.5 45.8
Public Male Female Total
29,368 55,781 85,149
27.4 51.9 79.3
119,344 103,588 222,932
27.9 24.2 52.1
19,658 17,426 37,084
19.2 17.0 36.2
168,370 147,427 315,797
26.4 27.8 54.2
All Schools
Male Female Total
40,264 67,104 107,368
37.6 62.4 100.0
221,228 206,504 427,732
51.7 48.3 100.0
49,163 53,116 102,279
48.0 52.0 100.0
310,655 326,724 637,379
48.7 51.3 100.0
Source: Ministry of Education and Tanmia (2005)
Table 2.3 shows an increasing percentage of girls attending private schools,
rising from 10 per cent of the pre-school population to 35 per cent of the secondary
school population, signifying a desire by parents to remove girls from the public or
government school system into studies more suited to their needs. Girls in public
schools show a corresponding decline, from over half the student population (52%) in
pre-school to just 17 per cent in secondary school. Boys show similar tendencies,
although their proportions are impacted by the girls’ larger changes. Nevertheless, the
overall change to private schools reverses over the school years, from three-quarters
(79%) of the population in public pre-schools, to two-thirds (64%) in private
secondary schools.
Characteristics of the public school system are shown at Table 2.4.
Table 2.4: Public Education Indicators, by Emirate, 2004
Emirates Student Numbers
Teacher Numbers
Classroom Numbers
School Numbers
Pupil/ Teacher Ratio
Abu Dhabi 233,691 16,613 10,431 488 14.1 Dubai 144,461 9,141 6,113 213 15.8 Sharjah 117,391 7,788 4,913 216 15.1 Ajman 34,195 2,184 1,375 63 15.7 Umm al-Quwain 8,834 782 439 29 11.3 Ras al- Khaimah 29,091 2,158 1,287 69 13.5 Fujairah 44,435 3,391 2,007 129 13.1 Total 612,098 42,057 26,565 1,207 14.6 Source: Ministry of Education, Tanmia (2005)
15
Table 2.4 illustrates the public schools’ composition and population, by Emirate.
Dubai, Sharjah and Ajman exceed the UAE average of 15 students to a teacher and
also the school populations, that is, an average of 507 students per school. Dubai has
on average the largest schools, being the only Emirate to exceed the national average
of 22 classrooms per school. Umm al-Quwain on the west coast of the peninsula and
Fujairah on the east coast evince lower than the UAE average in pupil/teacher ratios,
physical size of the schools and the average number of students in each school.
However, these statistics may be mitigated by such factors as population growth, and
isolation from the main coast (Fujairah).
The changing demographics of the school system reflect those in other countries
displaying similar economic circumstances. Where private schools compete with
government-owned schools, parents aspire to place their children in a private school
for reasons which include: religion or secularism; quality and breadth of education;
status and future connections for the child’s family; a nurturing environment,
especially for girls; and for selected careers, such as the arts. Whilst the Ministry of
Education nominates and monitors the curricula of private schools, arguably, the
‘refining’ of education may take a different path, moving the Emirati population
toward higher education or specialised professions, which may or may not focus on
employability. Thus, whilst social capital can be enhanced through a private
education, given the effect of higher education, human capital aspirations for the
individual and the government may falter.
2.3.2 Higher Education
The first higher education establishment, the UAE University opened in Al Ain
in November 1977; by 2004 it had over 20,000 graduates. More recently, Higher
Colleges of Technology for both sexes opened in Abu Dhabi, Dubai, Al Ain, Sharjah,
Ras Al Khaimah and al-Fujairah. These colleges supply a wide range of professional
skills to the job market, from Business Administration to Chemical Engineering. A
specialist university for women, Zayed University, opened in 1998 (Al-Ahed et al.
2004; Morris 2005; Rashid 2006).
Enrolments: Private universities experienced a substantial increase, 13 per cent
in the year to 2004, in non-national students, particularly females (Tanmia 2005).
Over 30 private and semi-private institutions have been established in UAE. The most
16
high profile of these institutions are: University of Sharjah (1997); Ajman University
of Science and Technology Network (1997); American University of Sharjah (1998);
Ittihad University (2002); British University in Dubai (2004); Abu Dhabi University
(2003); The University of Wollongong in Dubai (1993). The premier female
institution, Zayed University, with campuses in Dubai and Abu Dhabi, was
established in 1998 and its aim is to achieve significant intellectual and social
development for women in UAE. It also expects its graduates to be well-prepared
professionals ready to become leaders in government, business, civil society, and
family life. Table 2.5 illustrates the variation in enrolments, although the overall rate
was 5 per cent.
Table 2.5: Enrolment in All-Higher Education Institutions, by Sex and Nationality, 2003-2004
Year Ending
Male Female Total
UA
E N
ational
Non-
national
Total
UA
E N
ational
Non-
national
Total
UA
E N
ational
Non-
national
Total
2003 13,006 13,401 26,407 26,675 13,414 40,089 39,681 26,815 66,496
2004 14,274 13,205 27,479 27,262 15,132 42,394 41,536 28,337 69,873 Change 10% -1.5% 4% 2% 12.8% 5.7% 4.6% 5.6% 5%
Source: Ministry of Education and Tanmia (2005)
The largest rise in Table 2.5 is that of non-national female enrolments in higher
education, nearly 13 per cent, although at the other end of the continuum, non-
national male enrolments actually fell. This dichotomy may relate to a relaxation
some time ago of the Emirati decree against non-national families, and the subsequent
residency approvals for traditional Muslim families to bring their teenage female
children to UAE; thus the greater numbers being qualified for para-professional and
professional work.
Despite a slight rise in Emirati female enrolment in higher education in 2004,
those applying for positions in public universities rose by just 1.4 per cent for the year
to 2004, compared to their 29 per cent increase in private universities in the same year
(Tanmia 2005). This suggests that Emirati females prefer private universities,
arguably due to the greater affluence of families who do not have to accept free public
17
education; and the greater relevance and acceptance of private university
qualifications by potential employers (Tanmia 2005).
A further distinction is that two thirds of all higher education enrolments in UAE
are national females, although the national male enrolment rate is rising at a greater
rate. Emirati females in the 2004 academic year represented nearly two (39%) of
every five UAE enrolments, eclipsing non-national females (21.6%), Emirati males
(20.4%), and non-national males (18.9%); each comprising near one of every five
enrolments.
Graduates: The pattern shown for enrolments continues for graduates, as shown
in Table 2.6 below.
Table 2.6:Higher Education Graduates, by Sex and Nationality, 2003-2004
Year
Ending
Male Female Total
UA
E N
ational
Non-
national
Total
UA
E N
ational
Non-
national
Total
UA
E N
ational
Non-
national
Total
2003 2,325 1,080 3,405 5,758 2,104 7,862 8,083 3,184 11,267
2004 2,692 1,854 4,546 5,969 2,628 8,597 8,661 4,482 13,143 Change 15.8% 71.7% 33.5% 3.7% 24.9% 9.3% 7.2% 40.8% 16.7%
Source: Ministry of Education and Tanmia (2005)
Given the 17 per cent overall increase of graduates in academic year 2004 from
2003, non-national males experienced a great change in their cohort numbers from the
previous year, perhaps sufficient to skew the actual undergraduate numbers. Also,
from a low base, non-national females experienced a surge in graduate numbers,
whilst the Emirati rates of change were less, particularly for the females.
Emirati females represented just under half (45%) all UAE graduates for 2004,
relatively consistent with 2003 cohort. Both Emirati males and non-national females
each constituted 20 per cent of the 2004 cohort, with the remaining 15 per cent of the
cohort non-national males. On a gender basis, therefore, females comprised two thirds
(65.4%) of the cohort, a dramatic illustration of the changing cultural mores regarding
female education and therefore future workforce participation. This outcome is
confirmed by Sayed (2001) in an opinion survey, which revealed that 97 per cent of
UAE males and 99 per cent of females supported gender equality in education.
18
Female Graduates’ Prospects: However, despite their dominance in the
educational sphere, female graduates are challenged by personal and structural
barriers when entering the workforce. According to Al-Oraimi (2004), social and
family pressures demand that some women stay at home until they get married.
Affluent families provide for girls and young women, who at this stage of the
country’s prosperity, do not need or seek any form of self-support. Others who do
enter the workforce may leave their jobs after marriage, or retire early to have
children. Finally, the open-market policy encourages the influx of non-national
labour, which competes on a cost-effective basis with UAE nationals, including
women.
Career women also face discrimination regarding their technical competency and
their intentions regarding parenthood. Nevertheless, Kabbani and Kothari (2005),
referring to the GCC countries, state that if labour markets operate efficiently, non-
nationals can be absorbed into the economic activities of a labour market without
considerably affecting unemployment rates.
2.4 Religious Observances
Islam is the official religion of all seven emirates. Islam is both a religion and a
legislative system, affecting a country’s trade and workforce. It is therefore the basis
of UAE legislation and decrees. In the 2001 census, 76 per cent of the 4.04 million
total population was Muslim, 9 percent was Christian, and 15 percent belonged to
other religions, including Baha’is, Paris and Sikh (U.S Department of State 2006).
The UAE constitution promotes tolerance and freedom of religion and this is widely
practised in the country (Wilkins 2001b).
2.4.1 Islamic Observances
The five pillars of Islam define the duties of Muslims: the profession of faith,
prayer, alms giving, fasting and the Haj (the pilgrimage to Mecca). Muslims in the
UAE pray five times a day, downing work to pray with the Azan (call) to prayer. This
occurs throughout UAE workplaces.
Ramadan: Throughout the Arab countries, including UAE, Ramadan has special
significance for Muslims. The holy month starts and ends with the sighting of a new
19
moon. Fasting is compulsory for Muslims who are physically fit and they do not eat
or drink between sunrise and sunset.
Eids: Islam observes two religious holidays (Eids). The first, Eid al Fitr, is at the
end of Ramadan, and Muslim countries allow three or four paid holidays for the
celebration for all, although there is some flaunting of this practice where small firms
pay non-Muslims half pay. The second is Eid Al-Adha, is the greater festival of four
days and occurs some 70 days after Eid al Fitr on a set date according to the lunar
Islamic calendar, with similar celebratory activities. Again, non-Muslims also take
leave with Muslims on full pay.
2.4.2 Islamic Law and Finance Islam impacts work choices for Muslim entrants into the workforce. Many
families intercede if the career envisaged by a graduate conflicts with religious
beliefs. For a prospective financial career, Islamic law sources prohibit interest, or
usury (Riba). However, whilst some Islamic scholars strictly define interest as a
version of usury, others are of the view that interest accrual does not necessarily
equate with usury. For the former, any financial trading based on interest is forbidden,
and as Emiratis remain conservative, Shari’a prohibitions are observed. There are
ongoing and unresolved debates about what this means for actual business practice
(e,g. Archer and Karim 2007).
This legal argument of Shari’a is of the utmost importance to the UAE
government. UAE displays impeccable financial credentials to attract the
development necessary for its society and economy; there is no way to avoid global
financial instruments that embed interest-bearing funds, and financial trades move in
and out of UAE almost instantaneously. UAE cannot depend on non-nationals to act
for the host country in managing these oil-based financial systems; it must develop its
own cadre of financiers. Further, the public sector must display the financial acumen
to put in place the country’s checks and balances on its funds flows to maintain its
financial hegemony and reputation.
The social and religious argument is thus that inconsistency and different
interpretations of financial careers create a major issue for the devout Muslim
community. It is in the government’s interest that UAE Muslim scholars distinguish
between usury and interest to clarify Islamic, and thus UAE law, and promote public
20
debate on the all-important financial standing of the UAE. To assist in Emiratisation,
there is an option for financial institutions to segregate their activities so that Muslims
can work in areas not directly associated with interest, such as economic analyses.
2.4.3 Globalisation
The effect of globalisation on Muslim sensibilities is described by Najjar (2005)
as the ‘ removal of Islam from thought and action, so that Muslims become
subservient to the West’. Indeed globalisation has changed the UAE Muslim
community, with Islamic prohibition of unsupervised interaction between unrelated
men and women now routinely bypassed; as is the use of face veils. There has also
been the introduction of bars and nightclubs, often frequented by Emiratis.
Nevertheless, Islam’s flexibility allows interpretations consistent with modern
principles such as gender equality and social development (Abdel-Hady 2005).
Therefore, the impact of globalisation on Islam is inevitable and Muslims should take
these opportunities in knowledge, science and technology, without necessarily losing
Islamic cultural individuality.
In the following section, UAE’s Islamic culture and modernisation is discussed
in light of its rapid development over the last three decades.
2.4.4 International Overview
UAE is signatory to a range of international conventions and a member of many
international organisations, and thus invites analytical comment and advice. For
example, the International Monetary Fund recently (December 2007) noted the
country’s diversification, funded from rapid oil price rises, and further notes that the
government should address an impending housing crisis for its nationals caused by
this development (International Monetary Fund, 2007). Although UAE is a long-term
member of the World Bank, which is another example of international reach, that
organisation tends to adopt a wider GCC approach; however, the Bank notes previous
deep technical assistance to GCC countries, including UAE (World Bank, 2008). On a
different topic, Transparency International ranks UAE on its Corruption Index as No.
3 for transparency in the Middle East, and No.34 overall. This accords with Australia,
for example, as No.3 in its region, and No. 11 overall (Transparency International,
2007). There is a perhaps understandable lack of prominence given to the UAE, and
indeed, the GCC countries in the publications of national development bodies, for
21
example, USAID, its UK equivalent, the Department for International Development
(UK DFID) and the Japanese International Cooperation Agency (JICA). For USAID,
UAE is a provider in hosting resources and logistics assistance across the Arabic Gulf
(USAID, 2008). Similarly, UK DFID notes that UAE was the recipient of assistance
two decades ago for a link in the global coaxial cable between that country and India
(UK DFID, n.d., 2008), whilst JICA acknowledges the trading partner status of UAE
and other GCC countries. (JICA, 2008).
The emergence of UAE as a significant contributor to world trade and a country
of very high living standards, despite the 2007 – 2008 temporary housing issue, is
generally acknowledged among its peers. As an indicator, the UAE consolidated its
international and regional position in the Growth Competitiveness Index (GCI) for
2008 published by the Geneva-based World Economic Forum, where it was ranked at
37 internationally (World Economic Forum, 2008).
2.5 UAE Culture
UAE’s Arab culture is of a social mien, concerned with a person’s status,
contacts, and education (Dakhil 1988; Terpstra & David 1991; Wilkins 2001a). As is
the case in many traditional societies, Emiratis’ attitudes differ in relation to the
person they are addressing, young or old, family or non-family. Children are taught to
respect their parents, elders in their family and people in authority. Behaviour is also
highly personalised, trust in the other party and a good personal relationship is a
precondition of all social and business transactions, (Long 2005). Under Arab
tradition, three days of full hospitality is offered to any guest, after which the
relationship returns to its previous state. However, language is an issue; although
Arabic is UAE’s official language, the preponderance of non-nationals results in
English being the lingua franca in business and frequently in social settings. This
undermines the cultural prerogative for citizens to use their country’s language.
2.5.1 Traditions
Many traditional UAE practices are still in evidence, and are being reintroduced
or formalised as ‘living memories’ for the urbanised population (Davidson 2005).
Indeed, Findlow (2000, p.39) supports this view ‘this modern Muslim Gulf Arab
nation-state retains strong elements of traditional conservatism while endeavouring
simultaneously to preserve indigenous cultural authenticity’. An example is
22
thoroughbred camel racing to preserve UAE’s Bedouin heritage, which is a profitable
and widely televised sport. Further, a program of development for Islamic-oriented
projects, such as new mosques and Islamic centres, is continuing (Davidson, 2005).
However, Islamic heritage and cultural pursuits are competing with new interests.
Emiratis adopted the global lifestyle with alacrity, dispensing with older pursuits such
as pearling, which was abandoned thirty years ago. Other traditional occupations such
as farming and fishing remain, but these are mechanised and use the latest technology.
In a drastic change from self-reliance to dependency, Emirati parents use non-
nationals to care for their children and thus the children miss out on the day-to-day
absorption of their Arabic culture (Hurreiz 2002). Together with Emiratis’ preference
for the generous public sector work, such dependency on others filters through UAE
society, and weakens initiative and resolve. Davidson (2005) states that many
nationals believe that the near-destruction of their country’s heritage is caused through
globalisation and external forces outside their control, thus the situation will not be
resolved and traditional UAE heritage will be lost over the coming years.
2.5.2 Social Change
Prior to federation in 1971, the Emirates’ populations were generally that of a
tribal desert people, the Bedouin (Al-Nahyan 2000). According to Robertson (1992),
cited in Davidson (2005, p. 262)
… alongside economic considerations, the impact of globalization on a developing state’s society and culture has also been recognised as a key motor of change, and the UAE has been no exception, with accelerating and often highly intrusive socio-cultural globalising forces having caused local divisions between those fearing and those ready to embrace such change.
Indeed, modernisation has not come without cost. Although economic
development gives great advances in education, health care, transport,
communications and other social services; it also challenges traditional UAE family
values. A major impact of social change is family fragmentation. In the past, three
generations of a family resided together, with the younger deferring to their elders.
Generational financial relationships have become redundant, thus elders do not have
the same influence, and the generations lead separate lives. However, ‘developing
states should not resist such change, but should instead remove all obstacles in order
to facilitate this inevitable transformation’ (Pratt, 2001, cited in Davidson 2005,
p.253). Whilst Pratt presents a confrontationalist view of acceptable social dislocation
23
in the charge to globalisation, devout and traditionalist populations epitomised by
UAE depict this view as insolent and irrelevant. Governments of any stripe have a
delicate balance to maintain popular support whilst encouraging competitive
economic development. UAE has a young population who, whilst not necessarily
embracing change, are removed from its worst effects through an exceptional average
income. The GCC countries are developing social infrastructure of education,
housing, health and security that, with sensitive attention to the older generations, can
achieve Pratt’s transformation in a stable political environment.
Lifestyle: Since federation, Emiratis of each generation embraced the economic
windfalls of new developments and social infrastructure that grow by the year, taking
UAE to one of the highest per capita incomes in the world. Lifestyles necessarily
change to respond to the rapid development-taking place socially and in business, as it
does worldwide (Davidson 2005; Long 2005). In addition, UAE nationals, who just
two generations ago rarely left their homelands, became inveterate travellers,
indulging their tastes for new experiences and ensuring their children are accorded
their every need (Davidson, 2005). Consequently, families created, in the main, a UAE
generation with unsustainable financial expectations.
Exposure to foods of other cultures has widened the tastes of Emiratis, mainly
toward the ubiquitous fast food chains (Long 2005). Meals are still made and
consumed at home, but new ingredients are added to traditional dishes, such as lamb
with spaghetti instead of rice or bulgur (cracked wheat) (Long 2005). Thus, sedentary
lifestyles and availability of rich foods in UAE result in the New World Syndrome of
high rates of obesity, diabetes and diseases resulting from smoking (Word Health
Organisation 2006; Shell 2003).
Notably, apart from the veil, the impact of globalisation has not yet absorbed
Arabic traditional clothing, which remains defiantly in vogue for men and women,
young and old, for both formal and informal occasions (Davidson 2005; Hurreiz 2002;
Long 2005). The exception is that whilst travelling, Emiratis tend to adopt global dress
codes (Davidson 2005).
Language: The Arabic language is increasingly marginalised in society, as
recorded and transmitted entertainment and news is frequently in English (Davidson
2005). However, the use of English facilitates the exchange of ideas and views and
24
forges greater links with others, therefore providing mutual support and a chance for
greater accomplishments.
Business: The impact of globalisation is everywhere. Traditional business hours,
that allowed long midday breaks to account for the heat of summer, are being replaced
through fiat and air-conditioning, to comply with international business hours and an
hour midday break. Further, traditional Islamic weekends of Thursday and Friday are
now being replaced with global Friday and Saturday. These changes reflect the global
nature of business, and, given time zones, the ability to communicate readily with
Asia, Europe and USA (Gulf News 2006).
Summary: The greatest change to Emirati society is that they are a minority, one
fifth of the UAE population and it appears that number (one million Emiratis) is
dwindling in proportion. There are simply not enough work-ready Emiratis to maintain
themselves at one in ten workers, and their economy passed this ability three decades
ago. Immense prosperity has changed the nature of the land, and the nature of its
people. For the sake of Emirati hegemony over its assets and citizens, this researcher
believes that UAE must provide the corporate and national leaders from its youth, and
that they be educated and experienced to take up this challenge. This is not occurring
in sufficient numbers or at a sufficient standard to result in the government’s vision of
Emiratisation for the workforce (Al-Nahyan 2000).
2.5.3 Dysfunction of Change
As noted in the above section, family cohesiveness was broken along
generational lines: the older generation may live separately, and non-nationals care for
children, thus all are divorced from traditional family values. Other effects of change
relate to the economy, and social issues such as drug abuse and delinquency.
Funds Outflows: As discussed throughout this thesis, non-national labour was
utilised over decades to build the social and economic infrastructure necessary for an
emerging state (Hurreiz 2002). The non-nationals now comprise 90 per cent of the
UAE labour force and the Abu Dhabi Chamber of Commerce and Industry (2005)
states that the non-nationals are overwhelmingly Asian and Arab unskilled labour, at
89 per cent of the total labour market, plus a low percentage of professionals. The
funds transfers to home countries results in an ongoing liquidity issue for UAE’s
balance of payments (Nasibi 2006), in 2004 the official and unofficial (estimated at an
25
extra 50%) outward funds flow accorded to remittances from the UAE was about
$US4 billion, as shown in Table 2.7.
Table 2.7: Remittances of Non-nationals in UAE between the years 1975-2004
Year
Remittances UAE ($ 1 billion) official
Between Growth rate %
Informal remittances ($ billion)
Indirect percentage of the total
official
Total transfers (1 + 2) ($ billion)
1975 0.428 1975-1980 178% 3.852 90% 4.280 1980 1.191 1980-1985 57.8% 6.749 85% 7.940 1985 1.879 1985-1990 29% 5.637 75% 7.516 1990 2.424 1990-1995 33.7% 4.502 65% 6.926 1995 3.242 1995-2000 15% 4.863 60% 8.105 2000 3.730 2000-2004 9.4% 4.944 60% 8.674 2004 4.080 2004-2005 178 % 5.437 57 % 9.520
Source: Abu Dhabi Chamber of Commerce and Industry
Table 2.7 illustrates that the estimated volume of remittances in 1975 were some
$US0.4 million and by 2004 reached $US4.1 billion for the 2.4 million workers, or
about $US1,650 per non-national per annum. Of UAE’s total employment payments
to non-nationals each year, the Chamber estimates that some 40 per cent are
repatriated to East Asia and the Indian subcontinent, 20 per cent to Arab countries, 30
per cent spent in UAE, and 10 per cent sent to Europe. However, the non-nationals are
contributing to the economic recovery of their own countries, although investment in
UAE’s fast development could be of greater benefit (Abu Dhabi Chamber of
Commerce and Industry 2005).
2.6 Summary
An historical perspective of the region underlies the factors that led to
federation of the United Arab Emirates; the impact of oil revenues on a traditionalist
people generating the assets to develop into a respected nation in the world economy
in a mere thirty years. The skewed population profiles over the period show the
impact of a non-national workforce and a preponderance of males: the non-national
profile exhibited 2.4:1 male-female ratio in 1985 to 2.6:1 in 2004 and this dominance
of males is an issue which the UAE needs to address. Education was a high priority of
the government from federation, with rapid development of schools, artisan colleges
and universities. The success of the building development to provide universal
education was not earlier met with quality curricula or appropriate teaching staff, a
surviving factor in the current interest of parents in paid private education over the
26
free public system. Another priority, sustainable development of the economy, is a
success with Emiratis enjoying perhaps the highest income per capita in the world.
However, this growth has resulted in an inundated Emirati population, with just one
Emirati to four non-nationals, albeit the latter are transient workers. Nevertheless,
non-nationals form more than half of the public sector workforce and now comprise
the private sector. This imbalance contributes to unemployment among Emirati youth.
The UAE greatly benefits from communication and information technology,
transport and health care services and has a modern social and economic
infrastructure beyond many Emiratis’ expectations. As with all change, traditionalist
social norms are challenged; trading practices change; and familiar architecture is
demolished and the largest buildings in the world appear in their stead. However, the
UAE government leaders are aware of this loss of tradition, and to secure cultural
identity, they provide support to balance modernisation and UAE traditions.
The marginalised Arabic language of the UAE national is another victim of
globalisation. Emirati youth embrace information technology, often in English, to
exchange ideas and capture knowledge. However, Arabic remains the national
language and they experience difficulty with English fluency, especially with
curricula, which is often in English. Nevertheless, enrolments of all female students
substantially increased as a result of affirmative action and provision of schools and
universities with qualified staff.
Of significance to this thesis, globalisation and the ready influx of qualified
and experienced professionals allows little room for the young, inexperienced
Emiratis to compete for private sector jobs (see Section.3.2.1). There is 20 per cent
unemployment for Emirati women and 8 per cent for men. Further, the high rate of
tertiary qualifications held by Emirati women is not translating into jobs, although
both national and non-national females now comprise nearly 20 per cent of the total
labour force compared to 3.6 per cent in 1995 (Tanmia 2005).
In economic terms, the UAE continues its reliance on non-national labour and
its inherent imbalances affecting the balance of payments and contributing a
transience, a non-stability, to organisations and society, including family break-ups,
illegal drugs and the concomitant delinquency. Also, of note is the impact of Islam on
job seekers, where jobs relating to interest-bearing products are shunned. However,
27
there is a religious debate on the definition and extent of the term interest, and its
resolution would facilitate Emiratis’ ability to take up positions in financial
institutions. The nature of Islam is being explored, and its role in the legal and social
lives of Emiratis.
Modernisation has opportunities such as acquiring knowledge, and technology;
however it impacts on Islam and traditional values. Change must be embraced, and
Muslims are confronted with a revaluation of their religion and culture to ensure its
relevance and their continued ability to thrive as a nation and a people.
The next chapter provides a review of the literature relating to the GCC and
demonstrates its relevance to the purpose of this study.
28
Chapter 3
Literature Review: Establishing the Context for Emiratisation
The purpose of this chapter is to evaluate the literature on which this research is
based, to review the results found in previous studies, and to demonstrate their
relevance to the aims of this study. The first sections of this chapter relate to the GC
C countries, which are described below. They discus the effect of oil rents on their
economies and particularly on their demographics from the time of the 1973 oil price
adjustments. The impact within a generation of non-national skilled labour and
substantial greenfield facilities on the traditionalist Arab culture resulted in a
dislocation of nationals in GCC’s largely imported socio-economic environment.
Thus, high unemployment occurred among Arab nationals throughout the region.
The ‘localisation’ factor, whereby GCC governments attempt to force job
opportunities for their nationals, has not been successful, and various policies and
attempts by GCC countries and others to address the many issues are next discussed.
UAE, as a small nation with a particularly high rate of development, experiences the
lowest national participation in its workforce of the GCC region, and factors
pertaining to this phenomenon are explored. As a corollary, the challenges for its
society, culture, political hegemony and economy are explored generally, and the
issues relating to localisation are investigated in the particular case of Emiratisation.
This chapter thus places the research questions of this thesis in the physical and
cultural setting of the previous chapter. It seeks to embed the issues relating to
Emiratis’ inability to enter the private sector into the fabric of this thesis.
3.1 Gulf Cooperation Council
The Gulf countries depend on crude oil and petroleum gas for their income; currently
accounting for 45 per cent of the world’s proven oil reserves, and some 17 per cent of
the proven global natural gas stocks (Al-Qudsi 2006). From the early 1970s, with oil
production and prices rising, the six Gulf countries (Saudi Arabia, the Sultanate of
Oman, United Arab Emirates (UAE), Qatar, Bahrain, and Kuwait) were confronted
with sudden and substantial inflows of oil revenue. These funds encouraged the
29
governments to develop their administrative and business infrastructures; and invest
in educational, health, and cultural institutions (Girgis 2002), thus creating a sustained
building impetus that continues to this day. Without skilled national labour forces,
and encouraged by an open door policy to attract non-national labour, large numbers
of non-national traders and labourers were drawn from traditional Asian sources:
Pakistan, India and Iran; and from the Middle East: Egypt, Palestine and Yemen.
Asians were technologically advanced and fluent in English, whilst Arab non-
nationals had a comparative social and political educational advantage as educators,
legislators, administrators and journalists (Kapiszewski 2003).
The Gulf countries shared common challenges of geography, demographics,
economic management and social development; introducing similar legislative and
administrative policy structures to manage development. By 1980, a cooperative
council was proposed to coordinate growth in the six Gulf States.
3.1.1 Role of the GCC
With their common heritage and creed, and similarity of government and
demographics, the six Gulf countries saw the GCC as a means by which they could
coordinate their economic and social policies, and develop the region’s independence
and security (Country Studies 1993; Peck 1986). The first GCC summit meeting, held
in the UAE (Abu Dhabi) on 25 May, 1981, brought together the six heads of state to
plan for the coordination of objectives in all fields; formulating similar legislation and
regulations for administration, trade and finance, environment and agriculture; and
encouraging cooperation with the private sector (Cooperation Council For the Arab
States of the Gulf Secretarial General 2007). All GCC nationals were guaranteed
equal rights in member states; examples are freedom to travel with an identity card
only, and to engage in trade and commerce (Kapiszewski 2003). Riyadh, capital of
Saudi Arabia, was selected as the location for the GCC (Davidson 2005).
3.1.2 Non-national Employment Due to the influx of expatriate workers over the last three decades, GCC non-
nationals in 2003 comprise 50 per cent of employees in Saudi Arabia, and 90 per cent
in the UAE (Fasano & Iqbal 2003). As a proportion of the total GCC population, non-
nationals increased from 31 per cent in 1975 to above 38 per cent in 1995
(Kapiszewski 2003). Women non-nationals’ share of all inflows rose strongly over
30
this period, from 8 per cent in the early 1980s to almost 30 per cent in 2000 (Rifai,
2004). Total populations of constituent GCC states are shown in Table 3.1 below.
Table 3.1: National and Non-national Populations in the GCC countries, 2001/2002*
GCC Nationals Non-nationals Total Total Member Population Percentage Population Percentage Population Percentage
Bahrain 410,000 60 280,000 40 690,000 100Kuwait 885,000 37 1,475,000 63 2,360,000 100Oman 1,790,000 74 630,000 26 2,420,000 100Qatar 165,000 28 420,000 72 585,000 100Saudi Arabia
16,000,000 70 7,000,000 30 23,000,000 100
UAE 622,000 20 2,488,000 80 3,110,000 100GCC 20,000,000 61.5 12,500,000 38.5 32,500,000 100
*All totals approximate Sources: For Bahrain. Oman, Saudi Arabia and the UAE: the 2001 Annual Report of the GCC secretariat, 27 July 2002, and The Economist Country Reports from mid 2002. For Saudi Arabia unpublished government reports were obtained; for Kuwait: Ministry of Planning data.
Table 3.1 illustrates the influx of expatriate labour, the prime-dislocating element
causing national unemployment in the region. By 2002 the total GCC population was
some 32.5 million with 12.5 million (38.5%) non-nationals. In the UAE, Qatar and
Kuwait, non-nationals constituted a majority at that time, up to 80 per cent of the total
country’s population. In Bahrain, Saudi Arabia and Oman, non-nationals compromise
26 per cent to 40 per cent of the total population. The origins of the non-nationals are
described below, in Table 3.2 for Asian expatriates and Table 3.3 for Arabs.
Table 3.2: GCC Asian Non-national Population Origins
Asia Indian Pakistan Bangladesh Sri-Lanka
Philippines Total Asia
Number 3,200,000 1,700,000 1,000,000 750,000 700,000 7,350,000Source: Girgis (2002) and Kapiszewski (2000).
Table 3.3: GCC Arab Non-national Population Origins
Arab Egyptian Yemen Palestine and Jordan
Syria Total Arab
Number 1,500,000 1,000,000 500,000 300,000 2,800,000
Source: Girgis (2002) and Kapiszewski (2000).
According to Girgis (2002) and Kapiszewski (2000) there were around 7.35
million Asian expatriates: 3.2 million Indians, 1.7 million Pakistanis, almost 1.0
million Bangladeshis, with substantial numbers of Sri Lankan and Filipinos. The 2.8
million Arabic, but non-citizens, communities comprise 1.5 million Egyptians, one
31
million Yemenis, also Palestinians, Jordanians and Syrians. With over 10,000,000
Asians and Arabs resident in the 20,000,000-strong GCC, there are therefore some 2.5
million non-nationals from the rest of the world.
Although the GCC countries have high fertility rates (3.5 %) and there are
cyclical patterns to expatriate influx, the non-nationals’ proportion of the total
population rises at an average annual rate of 5 per cent. With GCC nationals’ fertility
rate expecting to decline slightly, the national population at 2050 is forecast to be
around 60 million (Kapiszewski 2003). However, if the non-national’s growth rate
continued, by 2050 expatriates will number 230 million (Kapiszewski 2000),
effectively reversing the 2002 proportions shown in Table 3.1. The weight of numbers
of non-nationals on GCC states’ emerging administrative and social frameworks is
reaching a critical point in the states’ hegemony and thus the social capital formation
of the region. Influx of non-nationals at these levels is an impact on long range
planning, leadership and control over their economies. It is one purpose of this thesis
to draw academic and government authorities’ attention to the long term effects of
unimpeded numbers of guest workers on national public services, and limiting job
opportunities for their educated youth (Kapiszewski 2003).
In their short economic histories, GCC countries experienced three transitional
developmental stages for which the import of labour was inevitable (Girgis 2002).
Initially, there was the ’Major Influx’ from the early 1970s for a decade when oil
revenues supported infrastructure development. This period drew on Arab labour, due
to strong cultural, spiritual and language linkages with neighbouring countries.
Secondly, when oil prices declined sharply in the 1980s the ’Asian Presence‘ began as
a cost cutting measure and lasted until the mid 1990s (Girgis 2002). Finally, the
’Open Door Policy’ allows relatively unimpeded labour imports, which directly
impacts the centre of this research and is discussed in the following section.
3.2 Unemployment Among GCC Nationals
Unemployment for nationals is a phenomenon across the GCC labour markets
(Fergany 2001), given the strong presence of non-national workers in the region.
Unemployment presages a lack of human capital engagement for the states. Strong
national growth rates across the region create a continuing social challenge for
government and administrators in the provision of maternity and infant health
32
facilities, early childhood development opportunities, and schooling. For the non-
urban GCC nationals, traditional tribal and family structures are especially
challenging for the delivery of social services; for example, low literacy rates are an
issue in some remote areas. Thus, the early delivery of GCC government services was
logistical, the placement of sufficient institutions and staff to meet the needs of
neighbourhoods, towns and settlements. Later, with continually increasing numbers of
nationals’ children, especially an influx of girls in the education system provision of
middle and secondary schools and colleges dominated the governments’ agenda and
budgets.
In some GCC states, religious studies form a considerable part of the curricula
throughout the 12 years of schooling, and Islamic colleges are a significant
educational sector. Universities throughout the region were established, or
substantially restructured, in the final decades of the 20th century, and offer a free
education to increasing numbers of undergraduates. These factors impinge on training
and educational resources, which should lead to quality employment in the largely
non-national private sector in the region. Tertiary graduates, automatically employed
in the public sector until recent years, are now confronted with a reversal of their
parents’ fortunes as they face indifferent private sector employment dominated by
non-nationals. Less skilled nationals face competition from readily accessible
expatriate labour. Nationals frequently fall into a cycle of hopelessness in job
searching, similar to disenfranchised minority groups in other economies.
The following discussion includes illustrative statistics, trends, and economic
environments relating to the phenomenon.
3.2.1 Unemployment and Economic Statistics
In Saudi Arabia, the largest GCC country, unemployment of nationals in recent
years averaged about 13 per cent for all males, and is estimated at 35 per cent for all
youth aged 20-24 years. The latter statistic is of particular concern, as 56 per cent of
the population is under 20 years of age (Girgis 2002). According to Kapiszewski
(2000), 360,000 of the national labour force in Saudi Arabia are unemployed. This is a
critical issue as, unlike other GCC countries, there are no Saudi unemployment
benefits. The Saudi public sector provides little employment; for example, its
professional intakes absorb only 5 per cent of graduates each year.
33
About that time (1999), the Omani unemployment rate was 4.9 per cent of total
national population or 13 per cent of the 300, 000 Omani labour force (Al-Lamki 998;
Kapiszewski 2000). Economic statistics for the GCC countries from 1971-2001 are
presented in Table 3.4.
Table 3.4: GCC Countries Economic Performances, 1971-2001.
Country
Average Real GDP per Capita (%)
Average Unemployment Rate (%)
Average CPI (%)
Period 1971-1980
1981-1990
1991-2001
1971-2001
1971-1980
1981-1990
1991- 2001
1971-2001
1971-1980
1981-1990
1991-2001
1971-2001
Bahrain 8.2 -2.8 1.7 2.4 5.0 12.0 14.0 11.0 12.8 2.0 0.6 2.3 Saudi Arabia
6.7 -9.1 -1.2 -1.2 4.3 6.0 9.5 7.0 12.7 -0.1 0.7 4.1
Kuwait -7.4 -6.2 -2.0 -2.5 2.0 1.8 1.9 1.9 4.6 3.8 2.1 3.4 Oman 2.1 -25.0 0.8 1.7 N.D 5.3 12.9 10.3 N.D N.D 0.4 0.4 * UAE 24.4 -6.7 2.7 4.8 1.7 1.5 5.0 3.0 N.D 0.5 3.4 3.2
* Data for the 1990s only Note: N.D: data not available Source: GDP data from UN statistical database; unemployment data from official publications, IMF country reports and estimates; CPI data from Arab Monetary Fund database. This data cited from (Al-Qudsi 2006, p. 11)
Table 3.4 shows that real GDP per capita over the region grew slowly, if at all,
and with the exception of a static situation in Kuwait, unemployment continued to
rise. This evidence of depressed economies is confirmed, again with the exception of
Kuwait, by flat consumer prices in the GCC region for the two decades from 1981
(Al-Qudsi 2006).
National unemployment statistics in Bahrain illustrates the GCC trend of flat
economies and rising numbers of people out of work. Currently, there are some
20,000 Bahrainis unemployed, and if the trends in job growth and Bahraini
participation continue, this number will reach 80,000, 35 per cent of the workforce, by
2013 (Bahrani Economic Development Board 2004; Kapiszewski 2003). Kabbani and
Kothari (2005) state that in 2001 the unemployment rate among young Bahraini, 20 to
24 years, reached 38 per cent. Bahraini interventions are presented at Section 3.2.5.
Whilst 17,000 Kuwaitis, or 5 per cent of the total Kuwaiti labour force, were
registered as unemployed in 2002, trends indicate that this would rise to more than
23,500 by 2010 (Kapiszewski 2000). More recently, in 2005, UAE nationals’
unemployment numbers reached 29,000 (Tanmia 2005). The lowest proportion of
34
unemployment among the GCC countries was Qatar in 2000 with 10,500 or 2.7 per
cent of the workforce unable to find jobs (Fasano & Goyal 2004).
Unemployment throughout the GCC region is currently about 520,000 nationals
aged from 15 to 64 years. Girgis (2002) estimates that by 2007, GCC economies must
absorb 1.7 million national jobseekers. Table 3.5 below shows the long-term growth
of unemployment during the period 1974 to 2002 across the GCC countries.
Table 3.5: Unemployment Growth Rates in the GCC Countries, 1974-2002.
Period Country 1974 Unemployment
Rate
2002 Unemployment
Rate
Average Unemployment
Growth Rate (% p.a.)
1975-2001 Bahrain 3.9 14.0 5.0 1975-2004 Kuwait 1.0 5.0 6.9 1993-2002 Oman 13.0 17.0 3.0 1974-2002 Saudia Arabia 5.4 9.7 2.1 1975-2004 UAE 1.9 11.4 7.5
Source: Data are based on official country estimates and IMF country report. Note: 1- First and Final Year Rates indicate estimated unemployment rates for that period.
2- Bahrain’s unemployment rate is for 2001, and is sourced from (Al-Qudsi 2006 p. 12).
Table 3.5 records trends in unemployment growth rates over periods up to 30
years to 2004, ranging between 2.1 per cent per year in Saudi Arabia to 7.5 per cent in
the UAE. Taken with the Average Real GDP per Capita in Table 3.4, these figures
illustrate that the jobless rate exceeded real economic growth for GCC countries over
that period. This confirms the observation by Al-Qudsi (2006) that labour supply in
the region grew at higher rates than the long-term growth of jobs and a comprehensive
strategy by GCC authorities is required to encourage young nationals to acquire
technical skills in occupations with adequate labour demand. In the next section,
strategies that GCC countries implemented to address structural and cyclical
unemployment are presented.
3.2.2. Localisation: GCC Nationals Employment Strategies
Business organisations are influenced by the commercial and regulatory
environments in which they decide to compete (Boxall & Purcell 2003).
Notwithstanding globalisation, the national environment also impacts on
organisational resource strategies, providing physical infrastructure, educated
35
workforces, political economic systems and social order. As part of these
arrangements, governments impose regulatory and advisory workplace conditions that
organisations are always ‘embedded’ in structures of social relations (Boxall &
Purcell 2003).
Localisation is a term used in GCC countries for policies leading to national
substitution of non-national labour (Al-Enezi 2002; Kapiszewski 2000). The term is
modified as relevant for this thesis to a more direct ’effective localisation’, the
successful transition of a national into a position previously occupied by a skilled
non-national, and this term is pertinent to the successful placement of nationals in
senior management. Effective localisation is impacted by a national candidate’s
personal characteristics, identified by Potter (1989) as relating to the juxtaposition
of an individual’s attributes: qualifications, ability and experience.
Gulf countries have long experimented with localisation strategies, fulfilling a
constitutional GCC agreement to create better opportunities for their citizens. More
compelling reasons are their large and growing non-national communities; and that
in the next decade hundreds of thousands of young nationals will seek employment.
As the new graduates will be better educated, they will have greater expectations
than previous cohorts and demand better positions. The various policy instruments
of the localisation strategies for national employment are wage subsidies and
employment targets; and fees, charges and quotas on foreign labour to curb non-
national employment. Further, policies are GCC public sector wage restraints to
reduce the imbalance of conditions between the public and private sectors, and
addressing the quality of GCC educational and training institutions (Al-Lamki
1998; 2000; Bahrani Economic Development Board 2004; Kapiszewski 2000).
3.2.3 Localisation Factors
GCC localisation is a highly complex matter. Issues, which form part of the
matrix of localisation factors, are summarised by Moore (2005) at Table 3.6 and
discussed under.
36
Table 3.6: Issues Impacting Localisation
Issues Private Sector Justification Labour costs The high cost of local employees results in private sector reliance on cost-effective
expatriates for labour-intensive occupations. This negates government attempts to increase expatriate cost (residencies, or Iqama; visa renewal)
Social and culture mores
Locals are reluctant to undertake or seriously pursue certain jobs, despite localisation directives. For example, the forced localisation of employees in the vegetable markets in Saudi Arabia failed. Social status is of concern for young locals due to cultural mores including marriage.
Control over production process
Expatriate workers are flexible and disciplined. They are subject to short-term employment contracts, little legal protection, and in some cases, unable to change jobs without their sponsor’s permission.
Inability to integrate in multi-cultural workplaces
National employees are reluctant to integrate into multi-cultural work environment, again cultural mores concerning status.
Productivity It is difficult to fire local workers. Inadequate qualifications
Qualifications of nationals frequently lack relevance to the labour market: English fluency standards or a non-technical background
Job seekers Qualifications of nationals frequently lack relevance to the labour market: English fluency standards or a non-technical background. Without job experience, nationals’ ability is in doubt.
Mobility Local workers are less mobile than expatriate workers; they are reluctant to change job locations.
Source: Moore (2005)
Labour costs: There is a traditional disparity between the remuneration levels
for GCC nationals and imported labour, with nationals’ expectations oriented to the
munificent public sectors and non-nationals receiving labour market rates. For
instance, Al-Enezi (2002) found that the GCC private sectors prefer to hire cost-
effective non-nationals; the Bahrani Economic Development Board report (2004)
confirmed this finding, reporting that when all direct, indirect and productivity-
related costs are taken into account, non-national workers are one and a third times
less expensive to hire than Bahrainis. Further, a Kuwaiti private sector survey
reported that average wages of Kuwaiti nationals 20-29 years of age who completed
high school were one and a third times higher than the corresponding wages of non-
national workers in the same education and age cohort (Khalaf & Alkobaisi 1999).
The Economist (1997) reported that Saudi nationals generally demand six times the
salary that non-nationals receive; that non-nationals are also better trained, more
flexible and respond well to management direction (Khalaf & Alkobaisi 1999). A
recent study by Mellahi (2007) found that a key impediment to Saudi nationals’
employment in the private sector is employment costs. However, many
commentators note that wage disparity between nationals and non-nationals is
37
caused by the latter’s parsimonious lifestyles and the disparity between the cost of
living in GCC and expatriate, often Asian, countries. Further, additional costs for
subsidised services provided by the state are not taken into account in estimates of
costs of expatriate labour (Al-Lamki 2000; Fasano & Goyal 2004; Madhi &
Barrientos 2003). On an economic level, nationals’ income remains locally whilst
non-nationals remit their income abroad, with recent Saudi data showing that Saudi
Riyal 12 billion ($A3.77b.) was taken from the economy as a result of employment
of non-nationals (Taryam 1987; Girgis 2005).
Social and culture mores: Perhaps the most important localisation initiative of
the GCC is to encourage the employment of national females, using this principle to
empower women and improve their human capital dimensions, including financial
wellbeing, whilst increasing national percentages in the largely female-dominated
disciplines (Kapiszewski 2000).
Control over production process: Of concern to GCC authorities, Saudi firms
resist training national workers as the resources are lost due to the propensity of
nationals to leave work (Abdelkarim & Ibrahim 2001). Further, terminating work
contracts of non-performing expatriates is easier than the protracted appeals
processes for nationals (Al-Dosary 2004).
Inability to integrate in multi-cultural workplaces: On the impact of the
multicultural work environment on UAE nationals’ employment in the private
sector, Freek (2004) found that UAE nationals who are currently working in the
private sector perceive the multicultural work environment as a barrier to human
capital formation. Other matters Freek identifies are that social and cultural factors
are the cause of resignation for nearly 10 per cent of UAE nationals and females are
more concerned about the multicultural work environment than males (Tanmia
2004).
Productivity: GCC nationals work characteristics include limited commitment
and a reduced work ethic in face of onerous workplace conditions such as long
working hours; shift systems, especially split shifts; shortened weekends and length
of vacations; strict attendance standards; and indifferent employer attitudes to
cultural needs (Abdelkarim & Ibrahim 2001; Kapiszewski 2003; Madhi &
Barrientos 2003; Al-Ain University 1994; Willoughby 2005; Mellahi 2007).
38
Inadequate qualifications: Numerous research studies report the inability or
ineffectiveness of localisation due to structural issues: inappropriate education
disciplines and inadequate training systems that are not compatible with local
labour market requirements, resulting in a skills mismatch for human capital
acquisition. The UN Development Program (2002) states that an obstacle to
localisation is that a majority of university graduates in GCC countries pursue
religious or social studies instead of technical fields and business administration,
where private sector requirements are greater. As a result, 38 per cent of GCC
countries’ graduates are in social and Islamic fields, 34 per cent in education,
whereas only 18 per cent study technical disciplines and just 11 per cent business
administration. This suggests that emphasis needs to be placed on professional
business and engineering courses to alleviate these imbalances.
The GCC governments recognise education and training deficiencies in regard
to localisation, and consequently addressed the relevance and quality issues, whilst
continuing to establish institutions. Poor quality of education and training in the
GCC countries is a major factor in unemployment, according to Al-Yousif (2005)
and Girgis (2002), who point out that many educators are using outdated
approaches, such as an emphasis on memorising rather than techniques designed to
develop innovative thought. Al-Lamki (2000) supports and clarifies this view:
deficiencies in coordination and planning between educationists and the private
sector result in the employment of imported skills and knowledge.
Mobility: There is limited labour mobility in GCC countries for expatriates
(Fasano & Iqbal 2003). Non-nationals’ job mobility, for example, is restrained by
the sponsorship system.
Other factors: Kapiszewski (2000) believes that the main obstacle to
localisation of the some GCC workforces is the size of the population and therefore
logistical constraints. For example, in Qatar and UAE the workforces’ numbers
exceed that of the national populations.
Summary: The issues raised from researchers on localisation reflect the social
capital and economic consequences of government inertia on one hand, or
ineffective policymaking on the other. Opinion and studies cover the spectrum of
human endeavour in the GCC countries, although better policymaking tends to be
39
the response most favoured in the literature. The following section takes regard of
possible, probable and implemented responses to localisation in the GCC.
3.2.4 GCC Responses to Issues
Whilst the effects of marginalisation by expatriates on the GCC’s local
populations are well known and discussed, the means to alleviate these effects
remain elusive. As briefly noted in Section 3.2, the effects of rapid regional
development suit transitory consultants, managers and workers, who do their jobs
and remain removed from Arab society, although their numbers apparently have a
great impact on traditional culture. Long term consequences of the decades-long
rapid development are left behind by the non-nationals, who return to their own
societies and cultures. Kapiszewski (2000) advocates that the private sector should
not be solely profit-driven, but focused on long-term national priorities. Therefore,
adverse social issues such as widespread unemployment in the GCC countries
remain obstinate to measured policy restraints and governments seek greater
interventions. These interventions, particularly those affecting social or market
conditions, may foster their own issues at a later time. Nevertheless, structural
improvements such as realignment of educational systems, although difficult and
costly, have the greatest chance of success. Strategies to assist GCC localisation are
proffered by researchers (Al-Yousif 2005; Al-Dosary 2004; Al-Lamki 2000). These
include:
• Increasing skills relevance and standards by improving education and
vocational training for nationals
• Incremental localisation through private sector industry groups
• Controlling public sector wage differentials and limiting the growth of
public employment
• Implementing social benefits for all working nationals
• Decreasing the disparities in labour mobility by mandating GCC nationals’
dismissal legislation to non-national workers.
Education and Training: All education should be relevant to the job markets
to meet human capital principles and allow school leavers and graduates to be
work-ready for employers. Furthermore, GCC countries should increase research
allocations, particularly in oil related industries (Al-Yousif 2005; Al-Enezi 2002).
40
Al-Hamadi et al. (2007), find that nationals are attracted to private sector offers of
career development and learning opportunities; however, this requires considerable
investment by firms.
Sector Parity: Al-Enezi (2002) argues that the wage differential between
public and private sectors plays a significant role. A work ethic among nationals
must be fostered through public awareness campaigns, and governments should
encourage the private sector to provide comparable working conditions such as
wage parity, flexible working hours and training. The Islamic work ethic argues that
life without work has no meaning and engagement in economic activities is an
obligation (Yousef 2000).
Localising industries: A strategy for localisation in Kuwait is proposed by Al-
Dosary (2004). The researcher’s approach is to plan for localisation of all public and
commercial activity, and all occupations, first through key areas, such as finance,
public administration and petroleum production. Next, localisation is taken through
occupational levels, managers and professionals initially to assist in localisation of
the entire workforce. Serageldin and Li (1983) earlier criticised a similar localisation
strategy as the approach is dynamic and variables are not controllable.
An integrated and holistic three-tier strategy for localisation is presented by
Al-Lamki (2000) requiring governments, employers and national employees to have
a basic agreement regarding priorities in a social capital linkage of reciprocity.
Governments have few options to procrastinate at this late stage and have to commit
to localisation programmes in depth. It is important to develop and maintain unity
of purpose among public administrators entrusted with the responsibility of
localisation. Localisation should be determined for all economic activities, public
and private, and governments should ensure legislation is enforced (Al-Dosary
2004). A tool for such purpose is a central Nationals Employment Bureau to
facilitate job-hunting and placements (Al-Lamki 2000).
Quotas: In response to the localisation crisis, GCC governments introduced
quotas for nationals in particular areas of the private sector (Fasano & Goyal 2004).
Companies were asked to reach specific localisation targets by certain dates, or face
heavy fines. This move was criticised as potentially harmful to the economy in the
short term with a negative impact on the competitiveness of local organisations.
41
Ramady (2005) argues against quotas at this stage of GCC development, citing
Saudi Arabia, where the relative lack of skills in the local labour force, and the
inevitable rise in costs for businesses (Kapiszewski 2000), so the private sector has
increased national employment quotas in small and medium-sized companies
combined with fiscal subsidies for training nationals. In addition, the firms that fail
to achieve quota targets are subject to fines and sanctions such as prohibition from
bidding for government contracts (Elhage et al. 2005; Fasano & Iqbal 2003). Hatem
(2003) suggests two policies to assist localisation: imposition of quotas on non-
national labour, with strict penalty conditions, or a social tax for health and welfare
services for expatriates. However, Looney (2004) argues that any such taxes or fees
should only apply to skilled non-nationals, that if applied to low-skilled non-
national workers, then the cost of hire increases and there is a possibility that
demand for national workers then decreases.
National Management: Al-Lamki (2000) advocates professional and
experienced nationals as human resource managers. A strong human resource
management (HRM) system enhances organisational performance and can promote
responses consistent with strategic goals such as localisation (Bowen & Ostroff
2004). McCracken and Wallace (2000) state that the support and active
participation of top national management, as key stakeholders, is fundamental for
the development of strategic human resource management. Therefore, the GCC
nationals as managers have a responsibility to achieve mandated localisation
targets. In this regard, Kapiszewski (2003) argues for a position where employers
are forced to accept a reasonably qualified national.
Public Sentiment towards Employment: The attitude of nationals toward
private sector work must be addressed if human capital principles are to prevail.
Previous munificence of governments in absorbing school leavers and graduates
into the well-paid and complacent environment of the public sectors are no longer
available to the great numbers of youth now seeking work and the national youth
must secure their futures. Nationals should recognise the existing economic
situation and realize the value of attaining of and keeping a job in a period of
intensive regional and global competition (Al-Lamki 2000; Kapiszewski 2000).
Researchers collectively advocate for government intervention and
enforcement of selective localisation strategies or interventions, and there are
42
models of successful implementation available. Bahrain, as a smaller country with
40 per cent of the population non-nationals, nevertheless sets an example of
attainable localisation.
3.2.5 Bahrain’s Response to Localisation
To overcome social and market dysfunction caused by government
intervention, Bahrain is establishing the following comprehensive and integrated
reform:
• Labour market, to minimise market distortion so that economic and
education reforms can occur
• Economic, to stimulate private sector job creation, especially in the higher
management and professional segments
• Education and training, to improve Bahraini skills to meet employer
expectations (Bahrani Economic Development Board 2004).
The Bahrain government planned a comprehensive implementation program to
decrease the cost to the private sector of hiring Bahrainis, and increase the cost of
non-nationals. First, a system of labour fees was introduced. Employers pay entry
and renewal fees for each non-national employed, plus a Bahraini dinars 100
($A316) monthly fee for every non-national on their payrolls. These non-nationals
fees, when taken together with subsidies for recruiting and training nationals, are
calculated to equalise the cost of employing a Bahraini. Importantly, employers are
now required to offer remuneration and workplace conditions commensurate with
ILO standards for all employees. Next, the authorities established quota systems to
control worker inflows, and improved the mobility of existing non-nationals by
allowing those with a valid work permit to switch employers. Because of these
equalisation initiatives, localisation in the form of Bahrainisation targets can be
abandoned and employers can recruit freely from the Bahraini labour market.
This program has important consequences:
• Firms no longer have to engage in non-transparent, unpredictable, and long-
lasting negotiations with the government each time they require work permits
• It gives freedom to employers to find the best employee for the job
43
• It encourages Bahrainis to compete with non-nationals by improving their
performance and productivity
• It eliminates many black market activities such as hiring of phantom
workers.
Finally, Bahrain implemented clear and conventional termination procedures
for both nationals and non-nationals to recognise their rights and obligations at work
(ILO National Policy Group 2003).
3.2.6 Summary
In summary, it is clear that localisation is an important element of GCC public
policy, and has a high profile in the strategic objectives of national improvement
plans, with the establishment of public coordinating organisations, and the social
capital function of consultation with their private sectors. Previous experiments
with employer rewards and controls to achieve localisation largely failed, due to a
piecemeal approach at the implementation level. However, such attempts by many
public sector organisations have at least achieved a regional consensus that more
robust localisation programs, aligned as Bahrain’s, are the way forward. There is
therefore a greater probability that a more successful outcome for localisation will
ensue for many of the GCC countries.
In the following section, the discussion broadens from the Arabian Gulf to
localisation policymaking in selected countries, exploring strategies to repatriate non-
nationals after completion of contracts.
3.3 Localisation in Selected Countries
Strategies for localisation, a longstanding and international issue, are forged in
a complex environment of globalisation, economic growth and reform, and
competitiveness (Looney 2004; Al-Dosary 2004). Countries such as Malaysia
(Ahmad et al. 2003), Zimbabwe, South Africa (Muthien et al. 2000) and Fiji have
all adopted localisation policies (Jomo & Wah 1999). While it is not within the
scope of this thesis to provide a comprehensive discussion of national localisation
policies, it is relevant to provide a brief background of localisation in Singapore,
Malaysia and China to appreciate the complexity of initiatives designed to employ
local as opposed to non-local workers. In the coming paragraphs, the researcher
44
provides documented experiences of the manner by which these countries replaced
expatriates with locals.
3.3.1. Localisation in Singapore and Malaysia
Localisation is not a single policy worldwide; political and economic contexts
vary, particularly with the rising globalisation phenomena (Rees et al. 2007). A study
by Harry (2007) finds that localisation can be achieved by raising the cost of
expatriate labour: through minimum wage levels, increasing fees to employers of
expatriates including the real cost of government services to expatriates, such as the
cost of healthcare. Ruppert and Mundial (1999) state that the Singaporean government
introduced permits and fees for non-local labour to enhance the employment of locals:
• Work permits required for expatriate workers, in 1999 receiving under
$S2,000 ($A1,600) per month
• Three-year work permits for skilled workers under the monthly salary cap,
renewable up to 10 years
• Employment passes for skilled workers with professional qualifications
• Entry/re-entry permits for skilled workers with work permit or employment
passes and eligible for permanent residence
• Employers to post a $S5,000 [($A4,000) in 1999] security bond for each
expatriate worker to guarantee repatriation following the expiration of the
permit
Malaysia’s localisation policy is similar to that of Singapore with permits as
follows: visitor’s pass for temporary employment and professional employment,
together with an employment pass (Ruppert & Mundial 1999).
Despite Singapore’s early intervention of permits and fees, Hui and Hashmi
(2004) present a comprehensive strategy to address localisation for the city-state.
The authors advocate improving labour productivity by flexible and dynamic
industrial structures to encourage investments in leading high value added products,
improve workplace practices and ensure a quality-trained workforce. As
Singapore’s fertility rate is static, Hui and Hashmi recommend long-term measures
to increase the birth rate, meanwhile taking steps to increase older worker labour
force participation.
45
3.3.2 China
Localisation literature generally discusses or opines on economic and
demographic structures. Lynton (1999) considers corporate culture, and stresses that
to succeed in attracting national employees, management must place a priority on
localisation, so that expatriate employees encourage and support locals (Wong &
Law 1999). Law et al. (2004) agree: if localisation is a significant business
objective, then performance and retention of local employees are priorities, and
local employees are well-placed in the management team. Localisation is an issue
for many multinational firms moving into China, which require expatriates to take
part in the localisation process and reward non-nationals who successfully mentor
locals (Lynton 1999; Wong & Law 1999). However, Selmer (2004) argues that
bonus systems can lead to the premature placement of local managers, an issue well
documented in the literature (Worm et al. 2001; Furst 1999). Wong and Law (1999)
argue that expatriates in China may fear losing their jobs after localisation; therefore
good repatriation arrangements must be made.
Presciently, Rogers (1999) considered that expatriates will remain in China’s
businesses, leading to Selmer’s (2004) claim that Chinese firms need between five
and ten per cent of their workforce as expatriates to sustain competitive advantage.
This theme is based on Wong and Law (1999) who set out a process of planning,
implementing and consolidating to achieve replacement of expatriates. Planning
consists of a management strategy, localisation objectives, and consultation with
expatriate managers and it is the responsibility of HRM to train expatriate managers to
mentor local employees to achieve competency. Kobrin (1988) nevertheless argues
for other localisation mechanisms: career planning, development, and assignment of
nationals. Similarly, Fryxell et al. (2004) advocate localisation tenets of prudence in
recruitment and selection, emphasis on retention through remuneration and training,
adequate communication vertically through the organisation, and good relationships
between the local and expatriate managers.
3.3.3 Summary
In summary, Asian experiences of localisation in the literature focus on
implementation and embedding nationals into the workforce in a human capital sense.
Emphasis is understandably on management, as indigenous managers have an
46
inherent knowledge of local issues and a longer-term view of the employer’s
business, both attractive attributes for a firm’s survival. General agreement on Fryxell
et al. (2004) tenets for localisation of good recruitment, care in retention of the new
employee, and mentoring to identify emerging issues simply underlie principles of
good people management.
This completes the literature overview of issues, opinion and practices relating
to localisation. In the next section, the UAE environment, imbalance of its labour
force and the social and economic consequences are discussed.
3.4 Structure of UAE Labour Market
As a result of the UAE’s small indigenous population, its total labour force has
the GCC’s lowest percentage of nationals at 8.5 per cent (Tanmia 2005). Non-
nationals comprise over 90 per cent of employment in the private sector and 60 per
cent in the public sector workforce, and two thirds of them do not have a secondary
education (Abdelkarim & Ibrahim 2001; Davidson 2005; Kapiszewski 2000; Tanmia
2005). With continued inflows, there appears no plateau for this expatriate influx
(Abdelkarim 2001b).
The following discussion is structured by factors that form or impinge on the
labour market, the dominant force of the non-nationals, growing national female
participation, unemployment and barriers to Emiratisation and policies, practices and
opinion to overcome these issues.
3.4.1 Antecedents of Labour Market
Factors that shaped the UAE workforce during the past two decades were an
increasingly younger working age population, a growing reliance on skilled and
unskilled non-national workforce and the demand for technological skills (Tanmia
2005). Consequently, the UAE labour force as a whole grew by an average of 9.7 per
cent annually (from 1.3 million to nearly 2.1 million), while the UAE national labour
force recorded an average growth rate of 8.2 per cent each year, 16.7 per cent female
and 6.1 per cent males (Tanmia 2005). Due to social and economic pressures on
Emirati women, the national female workforce participation increased nearly three
times that of the UAE national male labour force over the period (Tanmia 2005). It is
expected that female workforce participation will continue to grow significantly as
47
social barriers against females entering the labour force decrease and females fulfil
their human capital potential of high performance in education, particularly at post-
secondary levels (Abdelkarim 2001b; Freek 2004; Tanmia 2005).
Non-nationals dominate the workforce, but continue to rise by an average of 8.9
per cent annually. Non-national male participation increased by an average of 7.6 per
cent and females by 10.2 per cent annually. Some 2.4 million non-nationals were
employed in 2004, while the UAE labour force was a mere 225,000 (Tanmia 2004),
thus the rate of growth of non-national employment continues to depress the overall
share of the nationals in the 2.7 million workforce (Tanmia 2005). According to
Abdelkarim (2001), if non-national and national labour forces growth follows past
patterns, the predictions for the year 2015 would be 436,000 UAE nationals, and a
further 4,800,000 non-nationals comprising the labour force.
3.4.2 Emergence of Women in Labour Force
UAE’s total female labour force for 2004 was 407,000, consisting of 345,000
non-national women (85.8%) and only 57,000 UAE national women (14.2%)
(Tanmia 2005). Despite a reduced proportion of the population in 2003 due labour
imports, there was a surge in the nationals’ female participation rate, increasing by 2
per cent in 2004 with a corresponding decline for the non-nationals. This surge
continues from a decade earlier, with a national female participation rate of 4.5 per
cent in 1995 to 12. 9 per cent in 2004, while national men’s participation rate
increased slightly from 35.5 per cent in 1995 to 36.2 per cent in 2004 (not included
unemployment) (Abdelkarim 2001b; Tanmia 2005). Freek (2004) argues that the
increase in the national women’s rate is attributed to human capital factors that
include economic necessity, increased participation in post-secondary education, and
shifting social attitudes. In addition, a declining fertility rate and a trend towards
women’s emancipation in the region are relevant to the increase (Tanmia 2005).
However, several studies find a disconnect between the education qualifications of
UAE females and those in demand in the job market (Abdelkarim & Ibrahim 2001;
Tanmia 2005)
48
3.4.3 Labour Market by Emirate
National and non-national labour force numbers vary between urban and
regional emirates. Table 3.7 illustrates the density and characteristics of the working
population by emirate.
Table 3.7:UAE Labour Characteristics and Populations, by Emirate, 2004
Emirate UAE Nationals/ Thousands
Non-nationals/ Thousands Totals/ Thousands
Male Female Total Male Female Total Male Female Total
Abu Dhabi 71 26 97 878 85 963 949 111 1,060 Dubai 34 13 47 709 132 841 743 145 888 Sharjah 24 8 32 282 57 339 306 65 371 Ajman 12 2 14 93 42 135 105 44 149 Umm al Quwain
4 1 5 21 6 27 25 7 32
Ras al Khaimah
15 4 19 56 15 71 71 19 90
Fujairah 8 3 11 40 8 48 48 11 59 Total 168 57 225 2,079 345 2,424 2,247 402 2,649 Unemployed 15 14 29 48 5 53 63 19 82
UAE Population
464 442 906 2,465 949 3,414 2,929 1,391 4,320
Source: Tanmia estimates, Dubai Municipality and Ministry of Planning (2005)
As an example of the urban environment, there were 13,000 national females in
the Dubai labour market in 2004, or 9 per cent of the emirate’s female labour force.
With the continuing building boom in the emirate, non-national males constituted 80
per cent of Dubai’s total labour force, symptomatic of their average 78 per cent for all
UAE. Sharing the rapid development in the country, the three largest emirates, Abu
Dhabi, Dubai and Sharjah accounted for over 80 per cent of the total UAE workforce.
Estimated unemployment at 25 per cent was greatest among female nationals,
and lowest (1%) amongst the transient female non-nationals. Male unemployment
was estimated at 9 per cent and 2 per cent, respectively. These matters are discussed
in the following section.
3.4.4 Unemployment
There are no accurate statistics for unemployed nationals in the UAE, a matter of
considerable concern to the authorities as it impinges on dimensions for social capital
and human capital status of nationals. As noted in Table 3.7 above, in 2004 there were
49
some 29,000 UAE nationals registered as unemployed with the Ministry of Planning
and Tanmia (Elhage et al. 2005; Tanmia 2005); however, not all job seekers are
registered with these two organisations and those registered may not be prepared to
take work, but are seeking better opportunities. The majority of registrants are
between 20-30 years of age, about half are female and over 85 per cent at least
finished their schooling. In 2004, at Table 3.7, the unemployment rate for UAE
nationals was 13 per cent, highest in the Emirate of Dubai, 26.8 per cent, with one
third having tertiary qualifications. Whilst the UAE economy is developing rapidly
with formation of organisational capital, Kapiszewski (2000) argues that the private
sector needs to expand at a rate to absorb hundreds of thousands of jobs for young
nationals leaving school over the decade.
Nationals are highly selective job-seekers, and once employed in the private
sector, have a reputation for abandoning these jobs. They prefer working in the public
sector, as discussed generally at Section 3.2.3. Abdelkarim (2001b) argues that this
trait is caused by unfair competition from non-nationals in the private sector, although
the private sector is much larger and employment is growing faster. Further, national
job-seekers, as products of an inferior educational system not oriented toward private
sector work, find that they lack the skills and knowledge readily available from
imported labour, a denial of basic human capital principles. Finally, and most
importantly, once nationals are employed, there is no career or educational path to
develop the aspects of competent organisational capital resources. Where there is an
option to buy in the required skill through non-national labour, there is no need to
train and develop a local management structure, or implement career development
programs (Al Dosary 2004).
The researcher argues that if these issues are not appropriately addressed, then
the UAE risks its political and social cohesion (Al Dosary 2004).
3.4.5 Summary
The labour market in UAE largely comprises non-national males (78%), in fact,
they represent nearly half (48%) UAE’s population in 2004. This places the
government in a position of administering to fraction of the population, its citizens,
who are a small as well as managing the regulations and services for a far larger
number of transient workers. The challenges of nation building under these conditions
50
are enormous, as are the risks to the security and prosperity of Arab citizens, subjects
of the Emirates. These challenges, epitomised by the need to maintain a stable social
environment for UAE’s youth to acquire human capital and invest it in the private
sector by replacing the current leadership in organisations, are explored in the next
section.
3.5 Challenge of Non-nationals to UAE Hegemony
The effect of non-national dominance on the minority UAE nationals is a source
of insecurity (Rifai 2004). Social commentators and researchers in the UAE are
accelerating studies and reports on the phenomenon, showing the consequences of the
non-national dominance on social structures (Abdullah 2007). All expatriates are the
target of concern, particularly southern Asians because they comprise much of the
unskilled labour for construction work, but also East Asians, Europeans and Arabs
(Abdelkarim 2001b).
Undoubtedly, given the continuing pace of UAE development, there is little that
nationals can expect to restore the pre-expatriate influx, and with a small population,
they are now unable to build, operate and maintain the country’s social and physical
infrastructure. However, by using Singapore as a model, the government’s vision for
UAE, Dubai and Abu Dhabi, implies that the process followed by the city-state to
achieve its pre-eminent position can also be applied in the UAE. Whilst the current
stage of UAE development lacks the checks and balances that Singapore employed in
its later stages of development, the way forward for UAE is to maintain social and
economic stability for its youth and to provide them with the skills and knowledge to
assume leadership of the next generation of undoubtedly better-educated citizens.
The following sections explore the socio-economic effects of a largely itinerant
male expatriate population on UAE.
3.5.1 Social Impact
The domination of non-nationals in the UAE population and labour force
impacts the fabric of Arab society, bringing in new social behaviour, customs and
cultural perspectives. This is a significant impact on the dense nature of Arab social
structures. The accelerating minority status of UAE citizens over the last two decades
has a lasting impact that is reaching xenophobic proportions (Davidson 2005). For
51
example, a news report on legislative changes to marriage carried the warning that
UAE men were increasingly marrying expatriate women. With traditional restrictions
on movements of unmarried Arab women and a consequential shift of young male
Emiratis’ attention to more approachable non-national women, the number of
unmarried Emirati women was increasing rapidly (Maadad & Rizvi 2003). The
government responded by offering Emirati men incentives to marry nationals,
including opportunities for free mass weddings (Emirates Marriage Institution 2005).
In a further bid to empower women, draft legislation prohibits inter-generational
marriage for UAE nationals over the age of 60 years (Maadad & Rizvi 2003).
Due to minimum salary requirements for non-nationals’ family visas, men are
unable to bring their families to the UAE, leading to a skewed demographic structure.
The continuing influx of male labour creates a highly imbalanced society (Davidson
2005); where, of the 4.3 million registered in the 2004 census, more than two-thirds
are male, making the UAE’s population perhaps unique at such gender imbalance and
placing strains on the social capital fabric (Elhage et al. 2005). The gender issue,
permeating throughout UAE society, is known to have adverse effects, and Taryam
(1987) found a positive correlation between gender and crime. This finding was
supported in UAE when criminal behaviour resulting in 37,359 arrests in 1996 rose 60
per cent to 63,618 in 1999, a mere three years later. Abu Dhabi, as the largest emirate
with 34 per cent of the population, recorded 33.5 per cent of the total crimes, followed
by Dubai (32% of the population) with 28.1 per cent, Sharjah (19%) recorded 17.7 per
cent, then Ajman, Ras Al Khaimah, Fujairah and Umm al Quwain respectively.
The overwhelming presence of non-nationals in every sector is a real risk to
Arab hegemony, social capital growth and culture. School children are taught and
cared for by non-nationals who may not share Arab religious or cultural beliefs and do
not imbue these qualities into their charges (Esim & Smith 2004); there is also
discontent at the growing influence of non-national media (Kapiszewski 2000). In
1998, Jamil al-Hujailan, the Secretary-General of the GCC, foresaw friction when
saying non-nationals pose grave social, economic and political problems that could
grow more complicated in the future and the only solution to those problems is to
replace non-national workers with nationals (Kapiszewski 2000). Relationships
between UAE nationals and non-nationals are strained and nationals feel marginalised
in their own country. Anecdotal evidence suggests that UAE nationals begrudge
52
benefiting from free health, educational and social services without paying taxes. For
UAE national graduates with or without jobs, expatriates tend to earn more, live in
superior environments in gated communities, and through their attributes, command
better positions and facilities. Male expatriates, attracted by the emergence of national
women, are now marrying them in greater numbers, imposing mores and cultural
shifts on the union that greatly affect the traditionalism UAE nationals are trying to
protect. Whilst benefiting financially and experiencing an increasingly affluent
lifestyle, traditionalist Emiratis are nevertheless becoming socially marginalised, with
their culture and age-old habits often under threat. The impact of these changes is
disorienting and estranging their youth, who are the first UAE generation to find
themselves in full competition for jobs, security and marriage in a country that is a
microcosm of the global society.
3.5.2 Cultural Impact
The culture of a country is the collective programming of the mind, which
distinguishes the members of one category of people from those of another (Hofstede
1984, p. 389). In this light, the UAE President, Sheikh Zayed Bin Sultan states that a
people that does not understand its past, and does not draw the correct lessons from
it, will not be able to deal with the challenges of the present and the future (UAE
Ministry of Information and Culture, Yearbook 2005, p. 258).
Language is a significant means of transferring the culture and heritage of a
society. Indeed, the Arabic language is a pillar of UAE culture and a characteristic of
Arab identity (Al-Hammady 1996), the language that has carried both Arab and
Muslim culture to all parts of the world (Taryam 1987). Nevertheless, as a living
language, there is an interchange with other languages and other cultures. In UAE,
non-nationals convert their concepts and material objects into Arabic and many of
their indigenous words and expressions became integral parts of the spoken Arabic
language. This has affected UAE nationals’ speech habits, similar to the French, who
react strongly to the Anglicising of their language. The use of English and other
languages on a daily basis by nationals leads to a marginalisation of formal Arabic
(Davidson 2005), which may well become a hybrid language in the future. Whilst
language is a carrier of culture, Atiyyah (1996) argues that the phenomenon applies
also to non-nationals, with their diversity in culture, language and nationality. As a
consequence, the UAE preference for socialising with their compatriots is shared by
53
non-nationals, who seek out their fellow nationals. Language fluency also raises
communication issues in the workplace, where Arabic, as the official language, is
frequently in the minority and English and other languages predominate.
Misunderstandings impact heavily on organisational performance, costs and safety.
There is little doubt that non-nationals physically develop UAE and provide many
material benefits, but by their numbers, they create a new society, which does not
reflect Arabic or Islamic values. To many citizens, the loss of their language,
traditions and cultural integrity are unacceptably high prices to pay for progress.
Recognising this drift of values, the government reinforces its commitment to
education of nationals by stressing maintenance of Islamic values and Arab identity
(Kapiszewski 2000). The debasement of UAE mores was earlier raised by Atiyyah
(1996), who asserts that the non-nationals from cultures that do not share the belief
systems and practices of the host Gulf culture find difficulty in adapting to the new
environment, with anti-social behaviour as a frequent outcome (Stone 2002).
3.5.3 Economic Impact
Expatriate labour is a phenomenon experienced by all countries (Al-Hammady
1996), with its ultimate role that of transferring skills and experience to nationals.
This is not the case in UAE, where expatriates are the source and means of nation-
building, of contributing to organisational capital, with little input from the country’s
citizens. This absolute dependence on non-national skills, knowledge, guidance and
raw labour is not challenged and there are no clear social policies to reduce the
expatriate numbers or influence in the country.
A further issue is that the majority of the non-national employees are low-
income unmarried males who spend little in the country and repatriate a high
percentage of their earnings home. Total fiscal transfer from UAE in 2002 were $US
4.5 billion ($A 5.7 billion) in 2002, equivalent to the national budget deficit for that
year (Davidson 2005). In reality, the remittances are much higher than reported
officially, as many non-nationals do not use banks or other official money transferring
agencies to send money home (Kapiszewski 2003). Nader Fergany (cited in
Kapiszewski 2003, p.45) notes that
‘the policy framework in which labour migration took place did not help reap the potential benefits of remittances at the macro level and instead
54
reinforce negative economic repercussions such as inflation, speculation in hard currency and dependence on imports’.
Continuing reliance on non-nationals labour and a high ratio of value-added
imports leads to persistently high development costs, and the growing non-national
population also adversely affects the UAE’s money supply. Rising prices increase the
operating costs for business and possibly degrade the UAE’s ability to attract
investment. Particularly in the rising cost of housing, nationals must accept the
inflated costs, whilst non-nationals are reimbursed for accommodation as part of their
salary packages. Further, the Emirates bears the costs of infrastructure and social
services for the non-nationals, who do not pay taxes in support of these services.
These conditions were foreseen in the early days of Emiratisation in 1985, and the
purpose of the policy was, inter alia, to ameliorate the effects of inflation through the
influx of labour, together with the isolation of Emiratis from the increasingly global
workplaces developing in their country (Davidson 2005; Al Dosary 2004). This was
contextualised by the Secretary-General of the Federal National Council (UAE
parliament), Muhammad Mazroui, who said, We are facing a grave issue that
demands swift solution. We are shackled and I want the solution now before I become
a mere one per cent (cited in Pass 2005, p.146).
Achieved by non-national labour, the country’s rapid development is viewed by
many commentators as positive overall, with significant and inevitable economic and
social dislocations that are temporary manifestations as the country follows
Singapore’s path to a mature economy. Notwithstanding, Maadad and Rizvi (2003)
voice acknowledgement of the debt that the country owes to its non-national
workforce.
3.5.4 Political Impact
The backgrounds of non-nationals vary through a global spectrum: language,
culture, attitudes and behaviour. This diversity may not always be benign, and non-
nationals could seek to intervene in the affairs of the country. The expatriates also
carry personal issues and negative attitudes, and these problems are frequently
aggravated and mishandled on all levels in the UAE (Taryam 1987; Rifai 2004).
Further, UAE is not immune to events elsewhere, especially the region’s terrorism
and wars (Kapiszewski 2003). For instance, in December 1992, due to the Babri
Mosque in India being demolished by Hindus, hundreds of Indian Muslim workers
55
demonstrated in Dubai, with fifty people wounded and considerable damage inflicted
in the area of the riot (BBC News 1992; Dubai Police 2005). There is also the ongoing
security risk of overwhelming numbers of foreigners in a case of perceived injustice
to their ranks, or threatening to withdraw services and assets from the country in the
face of a claim. This can extend to support from the governments of the non-nationals,
an example is an early (1980) Indian government protest against labour laws
promulgated by UAE; however, the matter was soon resolved (Rumeihi 1982).
The UAE government recognises the benefits and challenges of non-national
labour and is moving both to restore its hegemony in the national society, and to
address the concerns of those who have laboured for UAE’s development, for
example, non-nationals have the right to possess real estate. If the non-national is well
qualified and satisfied in the UAE workplace, then acceptance by nationals makes
sense logically and intuitively. Anecdotal evidence from the media, and the emerging
interest by nationals in their new, commerce-oriented environment also point to a
relaxation of a formal society by nationals, particularly the younger generations. This
is an ambiguous and unresolved situation that is susceptible to changing
circumstances in Emirati society.
3.5.5 Summary
The challenge to UAE hegemony and its social capital formation presented by
non-national employees appears as a manifestation of overwhelming numbers more so
than any intent to inflict harm on their host. As noted in Section 3.5.2, the expatriates
comprise a multitude of cultures and circumstances, are materialistic, transient and
divorced from their societies. By far the greater concern is that very transience,
inasmuch as the non-national who leaves is immediately replaced by another
knowledgeable, experienced and compliant non-national. It is widely assumed among
Emiratis that for these reasons the young, inexperienced and ill-equipped Emirati is,
against human capital principles, quickly dissuaded from competing with a global
workforce and joins the growing ranks of nationals unemployed in the booming UAE
economy.
UAE cannot fulfil its charter to develop a mixed economy and offer a prosperous
future to its population of a million; although the country has the financial means, it
lacks the human or social capital resources. To ensure their future, the graduate
56
cohorts must be prepared and equipped to contribute their human capital and take up
the leadership of the country. This is the policy of Emiratisation, or localisation,
which is discussed in the succeeding sections.
3.6 Emiratisation
Emiratisation is of the highest priority on the UAE government’s agenda. The
challenge of replacing expatriates with nationals, particularly in the private sector,
remains intractable for the unemployed and difficult for future school leavers and
graduate cohorts from the colleges and universities.
The issues reflect those discussed in Section 3.2.2 regarding localisation in the
GCC generally, and can be broadly divided into two, those that are national job-seeker
attributes and attitudes, and the employer-driven demands. The following discussion
places the GCC observations into an Emirati context.
3.6.1 Barriers to Emirati Jobseekers
Arguably the greatest barrier for an Emirati graduate seeking private sector work
is simply competition. Whilst previous generations of graduates were absorbed into
the public sector to build the public services (Freek 2004), this route was closed in the
late 1990s, as the public sector became overstaffed with lifetime employees who were
automatically accorded generous remuneration and lifestyle accruements (Berengaut
& Muniz 2005; Elhage et al. 2005). Thus, expectations for male and female children
growing up ten to twenty years ago in professional households reflected their fathers’
social positions which, except in very few cases, were not part of the market
economy. This aspect of UAE’s social development provides a strong capital theme
throughout this study.
Not only did the public sector become unattainable, the new graduate cohorts
confronted a chaotic, unstructured and unfathomable job seeking process in the
private sector. Jobs in the private sector were unlike the relatively ordered public
sector, where a position fits into a framework. The private sector employs on a needs
basis, and the job is individualistic, lacking structure and definition, and often
unsupported in the workplace (Proad et al. 2002). The graduates have no starting
point, and their parents and university supervisors have little or no knowledge of
market forces (Yang & Samiha 2001). This situation is changing as external
57
corporations are attracted to UAE’s economy and bring their organisational structures
and policies to the job market. However, Islamic and cultural constraints also occur.
Many UAE nationals do not want to work in interest-paying institutions such as
banks; some families do not favour their female members working in a mixed gender
environment (Freek 2004).
A further barrier may well be the limitations of previous research findings
(Kapiszewski 2000; Freek 2004). Frequently relying on previous studies, researchers
propose the same questions relating to the experiences of job seekers and those in the
workplace, and find the same answers. First impressions are not always analytic, and
in these studies, young UAE nationals report perceived slights in responses, lack of
concern for an individual’s well-being, and onerous workplace conditions. However,
they could be reporting their impressions of a competitive environment where
competency and work-readiness are assumed, and the recruiter is selecting from a
global marketplace. To address these less than effective responses, the survey
questionnaire of this study was structured for quantitative analysis to test variables of
capital constructs, and subjecting responses to statistical proof at each step.
The apparent lack of resilience in national employees to adapt to the workplace
indicates a lack of coping strategies; nationals need a more structured environment of
social capital: values, trust and respect than non-nationals (Woodward & Hendry
2004; Byars & Rue 2000). Structured environments have a hierarchy where nationals
find empowerment and a sense of belonging to their organisation, enhancing
organisational capital, and thus are encouraged to perform to the best of their
potential. Job satisfaction for UAE nationals is a high motivator, of which many
private employers are unaware, and a leading cause of turnover (Jain 2005). Freek
(2004) agreed with this finding, adding that Emiratis do not have recourse to
grievance procedures or an external employment arbitrator.
3.6.2 Barriers to Emirati Employment
Tanmia’s survey (2004) identified employers’ experiences with nationals
included issues of competency and motivation, and requests for salary levels well
above the norm, Competency standards showed deficiencies in English, qualifications
that did not match the job market, and low standards of qualifications (Kapiszewski
2000). UAE nationals found the workplace difficult, a source of high turnover rates
58
and a subsequent employer lack of trust in their work readiness (Freek 2004;
Abdelkarim 2001b). Employers found Emiratisation plans onerous, supportive human
resource policies and development practices, well as wage differentials for UAE
nationals were the main obstacles facing UAE nationals working in the private sector.
Authorities respond to findings (Kapiszewski 2000; Freek 2004) regarding the
workplace conditions that nationals find onerous. Taking the six-day working week as
an example, Tanmia (2004) suggested shift systems, shift rotation, and the two-day
weekends that are common practice elsewhere, and flexible work hours. Other
flexible working conditions include part-time and job-sharing arrangements (Elhage et
al. 2005).
3.6.3 Policies to Encourage Emirati Employment
Emiratisation policies generally follow those mandated by the GCC, discussed at
Section 3.2.4. They include a work environment which goes beyond financial matters
and takes regard of Islamic and cultural issues; support of skill development and
professional advancement (Guang 2002).
Of importance of matrix of high-level coordination and communication between
government, the private sector and academic institutions to ensure that qualifications
meet the expectations of employers, and that life long learning resources are available
to assist graduates adapt to the changing job markets (Samman 2003). This is apparent
also with the human capital dimensions of vocational and management skills, where
vocational systems appear to be expanding with incomplete information about market
needs, no coherent national strategy and weak linkage with the private sector (Devlin
1998). In addition, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE
Vice-President and Prime Minister and Ruler of Dubai instructions, established a
programme called “Emirates National Development Program” which was designed to
implement the latest human resource initiatives that will equip young UAE Nationals
with the necessary knowledge and experience to enable them to work successfully in
all sectors, including the private sector (ENDP, 2008).
The Emirati preference for lucrative, undemanding work in the public sector
reflects the continuing skewing of education toward the public sector job
specification, generalised policy work, more so than the detailed analytical work
59
demanded by the private sector. Freek (2004) argues that UAE nationals’ skills are
thus not a competitive match in terms of marketability for private sector jobs.
3.6.4 Implementing Emiratisation
The vision of achieving an annual 4 per cent Emiratisation incremental increase
in the private sector (Godwin 2005) produces much research into Emiratisation, as
noted in the GCC overview at Section 3.2.4. Freek (2004) and Tanmia (2004) argue
against the overuse of unskilled labour from the Indian sub-continent (Table 3.2),
preferring a diversity of nationalities and thus the possible emergence of Emiratis as
the dominant nationality in private workplaces.
Quotas and Taxes on Non-national Employees: One theme is greater controls
on non-nationals movement into the country, including a stringent quota system (see
Section 3.2.4), and taxing employers of non-nationals to pay for nationals’ training
and to assist in their salary differentials (Hatem 2003; Kapiszewski 2000; Abdelkarim
2001b).
However, the labour force is not homogeneous, and Tanmia (2004) reports that
enabling factors to facilitate quotas need to be identified, as the work permit system
where non-nationals were used in the absence of a suitable national did not reach the
expected Emiratisation levels. Abdelkarim (2001b) agrees, noting the potential of 20
per cent labour force Emiratisation by 2015 if the trend of female participation in the
workforce continues,
Target industries for quotas are selected on the basis of a robust industry with a
high profile, and attractive workplaces with skilled jobs and good working conditions.
Banking and the insurance industry fulfil these criteria, plus there is a proportion of
national ownership and income making ability (Tanmia 2005). Mandatory quotas are
applied to finance corporations with a target Emiratisation of 40 per cent (Davidson
2005), and this resulted in a doubling of national employees in the sector between
1997 and 2002, with 3,500 new workers to 2004 (Tanmia 2004). However,
succeeding rises in levels of quotas over a decade have not been met by the private
sector and the gap is growing due to rapid expansion of employment in finance
(Tanmia 2005).
If voluntary, even modest quotas of four per cent Emiratisation are difficult for
the private sector to attain, as few industries in the private sector achieve the target
60
(Godwin 2005). Further, statistical evidence shows that there is a growing gap
between actual and targeted rates of Emiratisation, as presented in Table 3.8 below
(Tanmia 2004).
Table 3.8: Actual and Targeted Numbers of Emirati Employees in the Financial Sector, 2003. Total number of employees (1)
Actual number of UAE nationals (2)
Targeted number of UAE nationals for 2003 (3)
Gap between targeted and actual (3)-(2) (4)
17,060 4,435 5,499 1,014 100% 26% 31.94% 5.94%
Source: Emirates Institute for Banking and Financial Services (EIBFS), 2004.
Supporting this trend in the financial industry, research finds that extensive use
of quotas, and restrictive and expensive visa requirements are likely to reduce the
UAE economy’s competitiveness (Nsouli & Kahkonen 2004; Elhage et al. 2005).
Structural initiatives to enhance Emirati employment include:
• Subsidised start-up loans for national entrepreneurs,
• Using the Market Information System as a job data bank
• Emiratisation units, in liaison with business ministries, to be established in all
emirates to assist in an individual’s job-seeking process, and advise on career
opportunities and further training for those employed
• Increase the cost of non-national labour through higher visa charges
• Eliminate all guarantees of employment in the public sector and introduce an
internship system in the fields important to economic development
• Minimise restrictions on non-national job mobility to assist greater job
flexibility, resulting in more opportunities becoming available for nationals.
(Al- Ain University 1994; Abdelkarim 2001b; Berengaut & Muniz 2005;
Freek 2004, Elhage et al. 2005; Kapiszewski 2000).
Referring to the last point, restrictions on labour market mobility of one group
are found to create discordance in the country’s employment patterns. Non-nationals
are tied to their employer for the length of the contract, whilst nationals may leave an
employer at any time without notification. Secondly, such restriction cause higher
than normal retention rates of worker, even under poor work conditions, skewing the
effects of working conditions on employee retention (Tanmia 2004). Abdelkarim
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(2001b) argues that restrictions on non-national job mobility create disadvantages for
Emiratis if employers, seeking workforce stability, give priority to non-nationals who
cannot change employers.
Specific Emiratisation initiatives are presented in the literature, following the
GCC examples at Section 3.2.4:
• Reduce the disparity between public and private sector conditions
• Comparable pension benefits between the two sectors
• Assist job-seekers with access to the Ministry of Labour data bank and
Tanmia to assist with retraining long term job-seekers
• Increase visa fees for non-nationals’ and impose bank guarantees on
employers for each non-national employee (Elhage et al. 2005)
Education and Training: The private sector’s regard for graduate qualifications
is the source of considerable debate. The education system should be oriented to
human capital acquisition through more marketable skills, at both the secondary and
higher education levels. School children, according to Freek (2004), should be
exposed to job awareness campaigns well before leaving school to inculcate an
interest in the private sector. An establishment dedicated to producing quality work-
ready graduates is proposed by Abdelkarim (2001b), together with rewards to trained
non-nationals for on-the-job skills upgrading of Emiratis (Al-Lamki 2000; Guang
2002).
3.6.5 HR Strategies
Human resource strategies are a means to Emiratisation, as noted in Section
3.2.4, leading to enhanced national employee satisfaction, and improved business
performance (Butts 1997; Peter & Johan 2003; Jonathan & Maura 2005; McCourt &
Ramgutty-Wong 2003). Employment strategies give effect to a firm’s competitive
goals, by recruiting and retaining UAE national employees with the skills and
motivation to contribute to the organisation’s capital and long-term success.
Established Emirati employees, with a deep knowledge of the national characteristics,
can offer invaluable advice and knowledge to the decision-making process. Lyle
(2005) found that in general, UAE employees performed better on core tasks,
expressed a higher level of effective commitment to their organisation, and
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demonstrated better citizenship behaviour when their relationship to their employer
reflected over-investment in training, rather than under-investment.
Constraints to the adoption of a more strategic role regarding UAE national
employees are described by Truss (2003) as at a national level, where government
decrees and expenditure mitigate against a flexible approach to Emiratisation. Freek
(2004) adds that this call for flexibility in managing Emirati employment should
extend to a strategic HRM approach to benefit all UAE employees, irrespective of
nationality.
3.7 Conclusion
This chapter comprises an extensive review of studies relating to the dominant
number of non-nationals now employed in the GCC countries, and specifically UAE.
This review is ordered through capital theory as a precursor to the empirical study in
later chapters. A summation is included at Table 3.9, Factors Impacting Emiratisation.
Table 3.9: Factors Impacting Emiratisation
Factors Issues
Purpose of Emiratisation
• Immediately address imbalance of majority expatriate workforce
• Immediately assist fiscal policy by controlling large cash outflows in the form of expatriated wages
• Stabilise civil society by providing jobs for nationals • Encourage women into workforce to promote their greater
financial independence • Provide for UAE’s future professional and management
capacity • Provide future leaders to maintain UAE’s socio-economic
development. Barriers to Emiratisation
• Employers’ preference for experienced and qualified staff, reluctance to provide basic training (English, IT, workplace norms)
• Skills and experience capabilities of nationals are not an appropriate standard for professional/management positions
• Greater proportion of guest workers are labourers prepared to work under onerous physical conditions
• Expatriates’ temporary status in UAE precludes the transfer of on-the-job knowledge, plus they are reluctant to be replaced by nationals
• Nationals’ expectations of culture-sensitive workplaces and salaries commensurate with living in UAE; they do not stay long with one employer
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• Nationals’ preference and expectation to gain public sector positions as were given to previous generations, wasa
• Women nationals’ reluctance to work openly with men, or to take a prominent position.
Policies for Emiratisation
• General GCC policy for localisation, ie, Emiratisation • Emiratisation policy established and reinforced regularly • Emiratisation of select professions in the finance and
insurance areas, and in certain jobs such as reception staff and hairdressers
• Supporting policies promoting quality education and work-skills training for nationals
• Supporting policies restricting expatriate numbers through quotas and visas
• Promoting organisational HR policies to support nationals with mentoring and career guidance. Continued:
Implementation Strategies
• Emiratisation promoted by the government through the media, emiratisation.org website, encouragement through schools and tertiary education
• Ceiling on public sector numbers, working conditions being considered
• Quotas for nationals in financial institutions and for employers of certain job descriptions
• Duties on expatriates work permits and length of stay • Monitoring of HR policies of target organisations, and of job
holders on trades people • Quality standards for educational establishments, including
improved language training and greater access to resources; greater communications with employer groups to address skills gap issues and plan future job requirements
• Encouragement for Emiratis to enter secular and commercial activities, such as professional associations, international travel and further education and training.
As shown in Table 3.9, factors are explored that contribute to the influx of
expatriates and to the growing unemployment among nationals, which in some cases
outnumber the total national population. The GCC is responding to member countries’
concerns that marginalisation of the nationals endangers economic stability, future
leadership potential and the risk of losing current skills and knowledge if the nationals
in the workforce fall to lower proportions of their workforces. GCC localisation
strategies are discussed, both at a national level and at the organisation’s workplace.
Examples of successful localisation programs are explored, notably Singapore and
Bahrain.
64
The discussion then returns to the UAE, and its hierarchy of advisers, policy
responses, and the progress to date. Whilst all GCC countries experience non-national
employment levels close to half their workforces or greater, UAE has the greatest
exposure to non-national labour, and thus the gravest issue; however, a promising
trend is the number of Emirati women entering the workforce, the socio-economic
impact of marginalisation of Emiratis in their own country is discussed, together with
several views of the human capital barriers creating that marginalisation: education,
skill levels, work-readiness. Means of addressing these issues are explored, again
from the national response to suggested employer responses.
UAE needs to take bold measures to increase employment of UAE nationals and
improve their employability in the workforce. These might include restricting
government sector employment and controlling increases in government wages and
benefits, promoting changes in attitude to work and facilitating the selection of tertiary
courses for appropriate career paths, better targeting subsidies and transfers, and greater
attention paid to employing social capital in job-seeking and career building for young
Emiratis. UAE will face grave issues in the future from nationals’ unemployment that is
a failure of the principles of human capital, and this will demand a swift solution.
Therefore, UAE sustainability is supported by the creation of sufficient jobs for
Emiratis to enable UAE to broaden its income base and promote a dynamic private
sector. It is significant to address that this study will attempt to answer the following
research questions:
• Identify the factors to enhance placement and retention of UAE nationals in
Dubai workplaces
• Establish whether these factors differ for organisations in the public or private
sectors
• Explain variations in UAE nationals’ engagement with their organisations.
The next chapter focuses on a conceptual framework of human, social and
organisational capital dimensions. Capital theory has not been systematically used in
policy development and implementation in UAE. This framework assists in the
development of the quantitative research in this study that identifies factors in capital
theory and assesses their impact on Emiratisation.
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Chapter 4
Conceptual Framework
Emiratis are a minority in their own country, comprising just 20 per cent of the
population, and less than 2 per cent of the private sector workforce. Yet they have a
comparatively high unemployment rate that to date remains obstinate to Emiratisation
measures. This chapter seeks to place this phenomenon in a capital framework for the
keys to Emiratisation: human capital, an individual’s education, skills, and
experience; and social capital, the networks relevant to an individual’s life stages. The
lock to which the keys fit is organisational capital, which provides the jobs.
It is widely recognised that investments in human and social capital improves
performance and thus organisational capital (Boselie et al. 2001; Ichniowski & Shaw
2003). Human capital theory states that the knowledge, experience and skills of a
manager, for example, are developed through processes of advanced education,
training and development, management experience and job changes (Tharenou &
Cateora 1997; Bank 1999). This form of human capital is proposed by Ichniowski and
Shaw (2003) as organisational capital, which is correlated strongly with the firm’s
performance. Building social capital in the organisation is an equally powerful tenet,
using the enhanced communications and interactive networks of theory to increase
flexibility and foster intellectual capital (Halpern 2005). Thus, societies with a high
level of social capital operate economic and social institutions at lower transaction
costs than those with lower levels of social capital (Platteau 1994).
The central argument of this chapter is that the findings of theoretical and
applied research show an improved corporate performance, organisational capital,
when human and social capital factors integrate. Human capital acquisition through
learning and job satisfaction increases the ability of a workforce to perform
effectively (Shaw et al. 2005; Tomer 1998; Michael et al. 2000). Social capital’s
networking interactions of strong and weak ties are applicable to communication
efficiency and employee trust (Seibert et al. 2001; Putnam 2000). Fostering capital
development is fundamental to the successful placement of Emiratis in private sector
leadership positions.
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In the following sections, human capital formation is discussed through the UAE
education structures to promote work-readiness, and in training and development for
career growth. Next, the manner by which principles of social capital: trust, gender
inequality and the use of wasta (nepotism) impact the organisation are considered. In
the final section, organisational capital factors are reviewed, with a focus on policies
and procedures in the organisation.
4.1 Human Capital Theory
The role of human capital in the knowledge economy is growing. The accretion
of human capital through education, training and development is explored, together
with influences of workplace environment on employees’ attitudes. It is argued that
the need for policies based on these principles is approaching a critical level for
organisations and for nations such as UAE. Finally, the dichotomy of workforce skills
and attitudes as evidenced by UAE nationals and non-nationals is examined.
4.1.1 Overview and Definitions
Human capital is widely accepted as a significant factor of growth, frequently
defined as intellectual resources that are formalised, captured and leveraged to create
assets of higher value (Prusak 1998; Kiker 1966). Thus, human capital is further
defined as comprising the knowledge, skills, competencies and attributes embodied in
individuals that facilitate the creation of personal, social, and economic wellbeing
(Healy & Cote 2001).
Figure 4.1 (see Section 4.4.1) depicts the manner by which these factors lead
toward localisation.
4.1.2 Economic Growth
As a fundamental asset in knowledge-based economies and a contributor to
economic growth, the accurate measurement of human capital is vital, featuring
prominently in wealth accounting (Laroche & Merette 1999; Healy & Cote 2001).
Many commentators such as Lynn (1999) and Sanchez et al. (2000) argue that human
capital represents a value-added contribution to the organisation, releasing wealth
through accretion of human competencies and, arguably, the breaking of ‘knowledge
silos’ (Dzinknwski 1999). A trend is emerging toward a significant source of
competitiveness, corporate human capital statements, which articulate an organisation’s
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knowledge management strategy, objectives, initiatives and results (Bontis 2004; Bukh
& Johanson 2003; Edvinsson & Stenfelt 1999).
The next section of the literature review will explore the significance of education,
and training on human capital development, Kurtus (1999) distinguishes education
from training, somewhat superficially, inasmuch as education concerns learning facts
and understanding concepts, formally in school or informally by self-study, while
training involves skills acquisition, either on-the-job, or in trade schools.
4.1.3 Role of Education
Education enriches knowledge distribution in a society, accelerating a nation’s
pace of change and growth (Healy & Cote 2001; Malhotra 2000). It develops skills
and knowledge, with a greater reach than skills acquisition; education improves
workers’ participation, productivity, confidence and loyalty in their work (World
Bank 1999). There is significant theoretical and empirical support that organisational
success is dependent on enterprise, gaining understanding and produce new patterns
of behaviour (De Cieri & Kramar 2003; Stone 2002).
The provision of education is inadequate for human capital development; it is the
quality of delivery that is important. For example, improved educational delivery to
lower school drop-out rates provides school leavers with increased future earnings
(Bontis 2004; Fuller & Heyneman 1989). However, skills produced by education for
the labour market may be inadequately matched with employer demand.
‘Qualifications inflation’ occurs when employers systemically require more advanced
qualifications for jobs without a corresponding increase in skill content (Healy & Cote
2001).
Research establishes that better-educated people are more likely to be employed,
with every additional year of education averaging up to 15 per cent higher earnings
(Healy & Cote 2001). There is evidence in many countries of a wide spread of labour
market remuneration, notably through educational levels; for example, medical
practitioners and engineers (Healy & Cote; Krueger & Lindahl 1999; Gittleman &
Wolff 1995). Further, educated individuals evince behaviour conducive to better
health, lower unemployment rates, and thus contribute to their society at a higher level
(Henderson 2005; Healy & Cote; Kenkel 1991). Following Nie et al. (1996),
Blanchflower and Oswald (2000) directly connect educational achievement to greater
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pleasure, as it influences perceptions of status. Importantly, Abdelkarim (2002) finds
that better-educated GCC national employees have a greater appreciation of issues
relative to competing with experienced non-national workers and to a work
environment that is dominated by other cultures. Those with higher education
attainment take a more confident attitude regarding their status with respect to the
non-nationals in the workforce.
4.1.4 Skills Development through Education
The average level of education of a country’s population impacts its
productivity, social development and living standards. For this reason, UAE rapidly
established a comprehensive and successful educational system for nationals and non-
nationals; as an example, national adult illiteracy rates dropped from 48 per cent in the
1970s to under 23 per cent in 2004, whilst a high-profile program to educate women
resulted in a drop from 62 per cent illiteracy in 1970 to 19 per cent in 2004. This
affirmative action program has an impressive success rate in higher education, where
the female to male ratio of 2004 increased dramatically to 154:100 (Tanmia 2005). In
private schools, the Ministry of Education (2005) reports that 51.3 per cent of students
are girls, and they outnumber boys at each stage. In public schools, the reverse
applies, and male numbers are greater at all stages except kindergarten.
The surge in children’s education is caused first by a decree that secondary
school completion is the minimum entry level for the UAE labour market; combined
with a rise in affluence, leading to a higher demand for education (Tanmia 2005;
Freek 2004). Nevertheless, educational delivery in the GCC countries is failing to
provide students with relevant skills for the labour market (World Bank 1999). Nour
(2005, p.5) agrees: ‘the education systems in the Gulf countries suffer from serious
weak performance/low quality of teachers due to a lack of teaching skills and
knowledge of recent teaching and learning techniques’. UAE school curricula are
obligated to adapt to advanced teaching methods based on technology, technical
practice and problem solving. Teachers are frequently under-qualified, and teachers
skilled in best practice should be sourced from countries such as Australia, USA and
UK. Further, freedom of expression in the classroom is not encouraged and many
students are not able to express themselves in an innovative manner. This has a
negative impact on their behaviour and attitude, low motivation through low self-
esteem and self-consciousness. There is anecdotal evidence that government schools
69
do not have sufficient computers for their students, a particular issue when
information and communication is increasingly accessed through the internet. These
issues relate to the fact that many public and private schools cannot achieve
international standards for their students.
The challenge for UAE is therefore to develop a system, which delivers a quality
technical education (Abdelkarim 2001b). Alghafis (1992) pointed out a mismatch at
that time between job specifications and the skills of Emirates University graduates,
the researcher also reported that there were few full-time graduate students in the
sciences. These factors presented a major hindrance for UAE to build up its
professional pool of expertise in the country. In addition, the job-skills mismatch
Alghafis reported remains intransigent, leading to UAE separation from global
knowledge, technology and information at a time when acquisition of knowledge and
formation of advanced human skills equates with progress.
To meet employer demands, the UAE Ministry of Education is accelerating
technical education programs; however, these are not popular with a mere 1,627
students enrolled in 2004. Abdelkarim (2001b.) points to this disinterest as
symptomatic of the malaise in education, which, without a long-term vision and
direction, is not as efficient, effective and relevant as it could be. However, the low
response rate to engineering in particular is partly caused by its rigour (Jakka 1996).
Potential undergraduates at UAE universities find engineering qualifications 25 per
cent longer than the norm for the same remuneration; engineers endure unpleasant
desert working conditions; and Arab culture values academic careers over technical
pursuits, thus there is a bias toward arts and social programs (Al-Misnad 1985;
Abdelkarim 1999). Similarly, Muysken and Nour (2006) found that education
delivery in UAE focuses on the preferred art and social science streams.
Researchers find that funding for the rapid expansion of education in GCC
countries over the past decades is slowing, and that an emphasis must be placed on the
work-readiness of youth, particularly in the neglected technical disciplines. Policies
aimed at redirecting students’ preferences are required: scholarships and greater
rewards for trades and technical disciplines (Al-Misnad 1985; Abdelkarim 1999;
Haan 1999; Pritchett 1999; Klein et al. 2001; Al-Sulayti 2002; Ali 2002).
70
UAE is perhaps further along the educational path to technical competency than
other GCC countries, but still lags best practice in these fields; its institutions relate to
society and culture and are not providing sufficient graduate competencies for either
the public or private sectors (Freek 2004; Al-Enezi 2002). They argue that higher
education authorities in UAE should form linkages with both sectors to ensure that
national curricula and programs are consistent with labour market demands, especially
in practical and professional English fluency (UAE Government Strategy 2007;
O'Higgins 2001). O’Higgins (2001) continues on this theme, that representatives of
public authorities and business associations should plan for quantitative and
qualitative skills development to meet the future needs of UAE. Thus, this study
pursues education as a dimension of human capital (Chapters 8 and 9), and as a means
to assist UAE employees to be work-ready and career-oriented (see Section 6.1.4,
Section 5.6.3 and Section 7.1.4).
Formal education is not sufficient for the continued development of human
capital. Further, training and development and skills formation provide a nation’s
workforce with the means to compete internationally in a rapidly changing world. The
next section considers training and development, its effect on individuals and their job
performances. It is followed by an examination of training in UAE.
4.1.5 Training and Development
The significance of training and development and the creation of a learning
environment are recognised as key elements to competitive success, the attainment of
sustainable competitive advantage in the organisation (Altman & Iles cited in
Saunders et al. 2005). Stone (2002) states that accelerating rates of change and
international competition place training and development as a significant
organisational and national issue, not only to increase employee skills, but also to
reduce unemployment among Emiratis. Substantial skills’ training is positively
associated with higher levels of quality management (Stone, 2002). For instance, a US
study found that organisations that increased their long term training budgets
increased earnings and were nearly twice as likely to improve employee productivity
compared to those organisations that reduced their training expenditure (Stone 2002).
The purpose of training is through learning, to change attitudes, knowledge or
skill behaviours to achieve competency in an activity; well-trained employees
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enhance organisational productivity and thus competitive advantage (Beardwell &
Holden 1997; Lewis 1997; Mathis & Jackson 2000; Abdelkarim 2001b). Earley
(1987) states that appropriate training enables employees to adjust rapidly and
efficiently to a new culture. Training is also a role for higher education, as Dawson
(1997) points out, and it is achieved when universities are interlinked with business
and the public sector to coordinate and transfer new knowledge to graduates through
life-long learning. Bonti (2004) argues for research funding for institutes for
cooperative ventures between university and industry to nurture a sophisticated
education system; an information acquisition system; funding institutions; research
institutions for basic and applied research; technical support systems and science
education for the public at large.
Training and development initiatives in UAE rarely reach international
standards, (Abdelkarim 2001b; Gray 2001). Generally, the training that does occur
comprises technical training, including information technology, it is of minimal length
and delivered by a few professional trainers. Freek (2004) concurs, reporting that
UAE employer training is in low-investment, low cost and quick-profit areas such as
sales, computer awareness, marketing and management development. Tanmia (2004),
in a survey of nationals in large companies, reported that training delivery by these
employers concentrates in one stream on vocationally-trained employees; and in the
other stream on specially selected graduates, who received individually tailored
programs that include overseas training in well-recognised institutions. However, 52
per cent of UAE nationals are not given enough training, and 59 per cent of those
surveyed favoured the provision of technical training (Morada 2002; Tanmia 2004).
The Tanmia report confirms prior research that UAE does not have a training-led
employment culture and therefore, employers resort to recruiting non-nationals with
readymade skills (Gray 2001; Wilkings 2001). Abdelkarim (2001b) finds that
omissions from UAE training programs include competent supervisory training,
especially in the manufacturing sector for shop-floor supervision, and technical
training for industry. As a part result of under investment in training, UAE nationals
leave employment due to little opportunity for career development (Mansory 2005).
The issues leading to under-commitment to training UAE nationals discussed above
were themed by Abdelkarim (2001b): unclear objectives, minimal times allocated for
delivery, and inappropriate training venues.
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Training and development are social science disciplines requiring, inter alia,
quantitative evaluation analyses to report outcomes (Al-Ali 2003). Furthermore, those
assigned to training in many organisations rarely have the skills to conduct
evaluations or to reach the quality control standards good practice demands (Stewart
& Waddell 2003). As researchers find, there are significant issues relating to skill
standards in UAE, and these are evident in technical areas, and in nationals’ work-
readiness. Whilst remedial training by employers should focus on areas such as
problem solving, communication, team work, numeracy, literacy and information
technology, these issues point to deficiencies in UAE’s education standards (Read &
Kleiner 1996). A case is therefore being made which justifies training and
development as a condition of employment; and an attractive proposition for potential
job candidates (Scullion 1996 cited in Shen 2005). Consequently, this research
focuses on the significance of training and development, as a form of life long
learning, to enable UAE nationals to pursue their careers (see Section 6.1.4, Section
5.6.7 and Section 9.4.5).
4.1.6 Organisational Engagement According to Schaufeli at al. (2002, p.74), engagement is ‘a positive, fulfilling,
work related state of mind that is characterised by vigor, dedication and absorption’.
The reference to vigour relates to high energy levels and psychological resilience at
work, readiness to make substantial efforts in the job and persistence in difficult
situations (Mauno et at. 2007). Kahn (1990) and May et al. (2004) studied
organisation engagement and found statistical significance with employee perceptions
of meaningfulness, safety and availability. According to Maslach et al. (2001), there
are six areas of work life that relate to engagement, or it’s opposite, burnout:
workload, recognition and reward, control, perceived fairness and values, community
and social support. Many researchers confirm these findings; that when employees
obtain socio-emotional and economic resources from their firm, they reciprocate
through engagement (Cropanzano & Mitchell 2005; Saks 2006; Ostroff et al. 2005). A
study by Kwon and Banks (2004) for example, found that organisation engagement
leads to higher motivation, decreased turnover and organisation citizen behaviour.
Reduced turnover benefits organisations, given investment in recruitment and training
of employees (Stallworth 2004), and Aryee et al. (1991) found that organisational
engagement explains 37 per cent of the variance in intention to leave the organisation.
73
However, Kallbers and Fogarty (1995) did not find a relationship between
organisational engagement and intention to leave. The disparity may be explained by
endogenous factors relating to the research methodologies.
Empirical studies such as those by Adkins et al. (1996), Klimoski & Jones
(1995), and Kristof-Brown & Stevens (2001) show that peer communications are
strongly associated with employee attitudes; and similarity between group members’
personal goals and their perceptions of team goals resulted in better organisational
engagement. Employees with similar values tend to interpret events in a manner that
helps reduce ambiguity and stimulate teamwork (Ostroff et al. 2005). Yousef (2002)
found among 361 employees in a number of organisations in the UAE that employees
who perceive higher levels of role conflict and role ambiguity will be less satisfied
with the job and ultimately lead to less organisation engagement. Klimoski and Jones
(1995) and Neuman et al. (1999) argue that group homogeneity, associated with
greater effectiveness, increases employees’ sense of identification or social integration
within the group, but that does not mean ignoring group heterogeneity because
heterogeneity offers both a great opportunity for organisations as well as an enormous
challenge for employees. The value in this discussion to UAE nationals is that a
flexible attitude to work imparts acceptance into the work group and, through
acceptance and contribution, continuing development for the individual. Thus,
heterogeneous work groups that include UAE nationals with their unique knowledge
of the environment have the potential to consider a greater range of perspectives and
to generate more high-quality solutions than homogeneous groups (McLeod & Lobel
1992; Watson et al. 1993).
A review of research on changes in attitude, such as Furby’s (1978), finds that
feelings of possession create a sense of relaxation and responsibility that influence
employees to react positively. Therefore, when organisations provide employees with
a valued sense of belonging (place), sense of efficacy and effectiveness, and sense of
self-identity, they will be motivated to reciprocate (Edgar & Geare 2005; Arthur
1998). As well, when employees feel that the organisation contributes to their basic
needs, they reciprocate by making positive, proactive contributions to the organisation
(Schappe 1996; Eisenberger et al. 2001). Of relevance to this study, Morada (2002)
discovered that employees with higher education attainments have more influence and
confidence in their work relationships. Again, Boninger et al. (1995) state that an
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attitude’s strength positively increases when it directly affects a person’s own
outcomes and self-interest and additionally, when it is of concern to the person’s close
friends, family and social groups. However, Labatmediene et al. (2007) found the
opposite in their Lithuanian study, that whilst those with lower qualifications were
engaged with their organisation, those with higher qualifications were disengaged to a
greater degree. Arguably, the engagement of professional staff depends on the
organisation’s vision, and the depth of its culture.
Organisational engagement is thus impacted by an individual’s philosophical,
political and religious values relating to HRM policies and the working environment.
Enthusiasm for continuing employment and pursuing a career is an essential factor
Emiratis in this study, thus the research investigates if organisational engagement is a
deciding factor for UAE nationals’ entry into employment and to confront its
challenges (see Section 6.1.4, Section 5.6, Section 8.3, and Chapter 9 throughout).
4.1.7 Emirati Employment Issues Skills and attitude characteristics of UAE national employees differ substantially
from those of non-nationals due to the latter’s higher levels of education, skills and
attitude. Al-Otaibi (1992) earlier illustrated that work skills, attitudes and behaviour
were not satisfactory for Arab workers. UAE employees do not consider work as a
source of satisfaction and evince absenteeism, high turnover and general lack of
commitment to work compared to non-nationals (Freek 2004). For a sizeable proportion
of UAE job seekers and employees, their lack of qualifications, work ready skills,
experience, English fluency and personal characteristics are related to their status in the
workforce. In contrast, non-national workers, selected on merit, have more experience,
are better qualified and are willing to work longer hours for lower salaries (Isa & Hala
2001; Lynton 2001; Stephen 2001).
Little real work experience is a major factor for long-term unemployed Emiratis
Abdelkarim (2001a). Further, as discussed in Section 4.1.4, an impact on nationals’
employability is the absence of training and development opportunities from either the
public or private sector; traineeships for the unemployed, or training in the workplace
for the employed (Al-Mansory 2003). Freek (2004) agreed, finding that non-national
workers often discriminate against the UAE national workers and are quite reluctant
to pass on their knowledge, due to a fear of their role being usurped. This was
confirmed by McGregor et al. (2004) who found that UAE workers have little
75
knowledge of processes and need to be aware of the changing business environment,
such as e-business. They need transferable skills that are up to date, technologically
relevant and portable and these include the ability to work in a team. Other attributes
absent from UAE nationals’ employment characteristics are client-focused skills and
marketing acumen. These are attributes that form human capital, others being
resilience, self-confidence and the ability to be flexible and adaptable. These authors
(ibid.) summaries the matter; that to attract and retain quality employees,
organisations have to be aware that employees demand self-development and career
opportunities as part of the implicit employment contract.
This discussion relates to the current Emirati job market; at this time the greater
proportion of nationals work in the munificent public sector and some two per cent in
the private sector (see Section 3.4). However, the unemployed number approximately
29,000 (about 13% of UAE nationals’ labour market) and that number is growing.
Because of the overwhelming presence of non-nationals, their miniscule unemployment
rate (2% of the non-national labour market, or 53,000 people) actually is close to
double the number of unemployed Emiratis. Further, characteristics of nationals’
unemployment are that one-third have tertiary qualifications and one half are women.
The non-national labour market is over 85 per cent male, and has low standards of
education. Thus, the target recruitment opportunities for nationals coming into the
private sector labour market each year conflict only marginally with non-nationals.
Factors that impinge on the nationals’ target employment: high salary, good working
conditions and career opportunities, are those where competence, fortitude and team
work apply.
Thus, education or retraining, and work experience are crucial for the 20,000
nationals approaching their first job each year and these factors are a theme for this
research. Policies that assist in these areas include incentives for continual learning: on-
the-job training, part time further education, and IT-based learning for adults, and the
use of distance learning. Human capital acquisition for the new economy will repay its
investment for organisations in many ways.
4.1.8 Human Capital Summary
Localisation, it is argued, is a theoretical construct or a government program
where a nation’s investment in human capital, that is, education and socio-economic
development, is fulfilled. UAE is developing swiftly and it appears that continuity of
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such investment is at risk without a commensurate development of its social
infrastructure (UAE Government 2007). UAE first embraced globalisation to develop
its oil and then the country itself. It remains hostage to the forces of globalisation, an
itinerant workforce, and the unpredictability of the world’s financial focus (Section
2.1).
Education provided in UAE is proving inadequate for Emiratisation, and the
challenge for the nation is to develop a system which delivers a quality technical
education in a society where science courses are not sought (Abdelkarim 2001b;
Alghafis 1992). Students prefer art and social science streams, and as their predecessors
merely acquired an unchalleging qualification and moved to a public service sinecure,
the job-skills mismatch faced by twenty-first century career-seeking graduates in the
private sector remains intransigent (Muysken & Nour 2006). Social preferences and
inadequate education delivery are barriers to building a leadership stratum of national
decision-makers.
For private sector employers, localisation issues impact HRM policies, the
working environment and thus organisational performance. UAE employees do not
consider work a source of satisfaction and there is a general lack of commitment to
work. The disengagement frequently displayed in existing staff or potential recruits are
a considerable business risk (Freek 2004).
The public sector has its own issues. Until recently all Emirati graduates, with
questionable qualifications and little relevant experience, automatically moved into
lifetime careers in public sector organisations. Earlier graduates have assumed positions
of significance and thus stifle career aspirations of those who may surpass their
predecessors through international qualifications and a greater appreciation of the issues
that lie ahead for UAE. Yet again the linear human capital equation is unfulfilled; given
that qualified and knowledgeable young Emiratis are without a public sector career
structure to move into decision-making positions and thus contribute their human
capital to their country.
The relationships between capital theory, constructs or government policies, and
the perceptions, aspirations and experiences of Emiratis are thus the foundation for the
relevant hypotheses at Section 4.4
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This section presents issues such as education and training, organisational
engagement, and UAE nationals’ competency, all of which play important roles in
providing the basics for personal development, social cohesion and economic growth.
Indeed, higher education with comprehensive on-going training has a key role in
stimulating innovation conducive to sustained economic growth. Therefore,
organisations with greater investment in their employees can maximise this investment;
however there are other dynamics that impact employees implicit in social and
organisational capital.
4.2 Social Capital Theory
This section explores the concepts related to social capital and their roles in the
organisation. The first section defines social capital and its various theoretical points
of view. The second section focuses on three organisational factors relevant to this
thesis: trust, gender and nepotism.
4.2.1 Overview and Definitions
Social capital is widely accepted as a significant asset for creating and
maintaining healthy communities, vibrant civil societies and healthy organisations.
Many commentators have observed the centrality of social capital and civic
engagement to the well-being of democratic life (Coleman 1990; Fukuyama 1995;
Putnam 2000; Timberlake 2005).
Definition: However, the conceptual literature on social capital is still evolving
and a definition for it is not universally agreed. For instance, Bourdieu (1985, pp.248-
249) defines social capital as
… the aggregate of the actual or potential resources which are linked to the possession of a durable network of more or less institutionalised relationships of mutual acquaintance or recognition or in other words, the membership in a group which provides each of its members with the backing of the collectivity-owned (sic) capital, a “credential” which entitles them to credit, in the various senses of the word.
The OECD (Healy, & Cote 2001) define social capital as
… the internal social and culture coherence of society, the norms and values that govern interactions among people and the institutions in which they are embedded. Social capital is the glue that holds societies together.
Putnam (1993) and Coleman (1990, p. 334) add to the internationals’ definition:
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… the norms, the social networks, and the relationships between adults and children that are of value for the child’s growing up. Social capital exists within the family, but also outside the family, in the community.
Coleman’s view is that social capital is a useful resource of social relationships,
not belonging to a single group, but distributed throughout the community and of
special use to families and disadvantaged groups (Field 2005; Fine 2001; Morrow
1999). Thus, the themes of this study, children emerging into the workforce, the status
of women in traditional societies and therefore the central role of the family more
accurately reflect the situation in the UAE (Lowndes 2004; Field 2005).
In a comprehensive literature review on social capital, which included Coleman
(1988), Putnam (2000) and Ostrom (2000) identified that social norms, networks,
understanding, rules and shared knowledge are widely accepted as core elements of
social capital, with trust an additional element. The elements impacting on this thesis
are: trust, gender and nepotism, therefore the study will focus on these subsets of the
social capital genre.
Workplace Aspects: Social capital provides value for an organisation, supplying
workplace collaboration and unity, that is, obligations and expectations based on rules
of reciprocity and parity (Adel & Kwon 2002; McElroy 2002). Lesser (2000) finds
that social capital has two themes: the ‘sociocentric’ model where social capital is
held by individuals who use it for advancement; and the ‘egocentric’ theme where
social capital is of immediate use to obtain satisfaction within the organisation.
However, Cohen and Prusak (2001) and McElroy (2002) demonstrate that without
‘social capital innovation’, the sharing of knowledge and efficiency can be
significantly reduced. The stronger the connection between these three schools of
thought, the more value and satisfaction will emerge in the organisation.
Social capital facilitates organisational processes. Individuals who are well
connected socially are more likely to directly know someone who possesses the skills
or the knowledge they require, therefore reducing their search cost. Further, a strong
network can enrich compliance with group norms and level of trust (see Section
4.2.2). The cultural aspect of organisational social capital also affects the exchange of
new ideas with an expected increase in collectivist cultures, where people tend to
gather on a daily basis, compared to individualist cultures (Adel & Kwon 2000).
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Employment Prospects: Importantly for this thesis, individuals with a wide
network of friends can experience greater life enjoyment, better career prospects,
higher income, enhanced self-esteem and perhaps less unemployment (Woolcock
1998). Job seeking behaviours can depend to a certain extent on social capital’s
networking, where information-sharing in an individual’s social groups results in a
huge proportion of jobs being filled by applicants who know each other (Hannan
1999; Six 1997a cited in Halpern 2005). This is confirmed by a finding that less
supportive social capital in childhood, such as growing up in a single-parent family or
with family conflict, strongly predicts unemployment in adulthood (Caspi et al. 1998).
Social capital therefore starts to affect labour market outcomes from childhood, and
individuals who have strong networks are exposed to a much wider range of
information and opportunities for a better quality, and longer lasting, job.
Issues Arising: In some instances, social capital outcomes can be dysfunctional,
for example, group behaviour can have the effect of excluding outsiders (Sobel 2002;
Woolcock 1998). This can occur on a national scale, where strong long-standing civic
groups may smother progress by, among other things, securing a disproportionate
share of national resources and weakening broader social capital through the
community (Woolcock 1998; Adler & Kwon 2002).
Based on the literature review, trust remains an essential factor in the formation
of social capital, accumulating with each successful interaction. Therefore, this
research begins with trust as a cornerstone in social capital and explores its impact on
personal relationships.
4.2.2 Trust
Trust refers to the level of confidence that one individual has in another’s
competence and his or her willingness to act in a fair, ethical and predictable manner
(Nyhan 2000). The notion of trust is somewhat ambiguous; people from different
groups perceive the concept of trust differently based on their knowledge, culture and
understanding (Sobel 2002; Knack 2001) This suggests that cultural differences have
direct consequences for the type of trust among individuals.
Trust has an important effect in the organisation. Increased collaboration and
effective communication stemming from trust in co-workers leads to positive social
networking, better attachment and socio-emotional satisfaction for an organisation
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(Davis & Landa 1999). Employees with a high trust relationship exhibit a greater
willingness to take risks beyond sharing information; conversely, employee
performance is improved if issues relating to distrust are reduced (Ferres et al. 2004;
Beccerra & Gupta 1999). Educational levels of group members also impact trust;
qualified people have significantly higher levels of interpersonal trust, which assists
knowledge and information distribution (Helliwell & Purnam 1999). This effect
extends beyond the organisation, as Fukuyama (1995) states that success in any
organisation is dependent upon the cooperation of strangers. Trust cannot be built
overnight, it depends somewhat on organisational actions and structure, and
employees’ expectations or reciprocity (Helliwell & Purnam 1999).
Leaders’ concern for employees and the level of integrity they exhibit is
fundamental in establishing interpersonal trust (Russell & Stone 2002). There is
significant theoretical and empirical support that leader transactions characterised by
interpersonal trust create a better environment in which individuals feel more free and
flexible to express their ideas, participate in problem solving, and resolve differences
of opinion (Park et al. 2005; Zeffane & Connell 2003). Joseph and Winston (2005) for
instance, prove that participative leadership, acceptance of employees’ decisions,
organisational support, direction and performance feedback, and opportunity for
improvement were all highly related to trust. In addition, higher measurements of
supervisory performance lead to a higher level of organisation trust (Daley & Vasu
1998). However, Kern (1998) argues that in organisations, strong ties of trust and
mutual obligation may, in some circumstances, block information from outside and
impede innovation as discussed at Section 4.2.3. Nevertheless, this study supports
Park et al. (2005) and Zeffane & Connell (2003), arguing that personality, experiences
and time all play a significant role in trust. This suggests that a leader plays a crucial
role in the development of trust in the organisation.
Cross-cultural studies on employee trust confirm general research findings, that
employees are emotionally attached to the organisation when trust is manifest (Ferres
et al. 2004; Joseph & Winston 2005). In the GCC countries nationals’ trust in
potential employers is a barrier to localisation in the private sector. Budhwar et al.
(2002) in an Oman study found that non-national managers prefer centralised
decision-making, tight control and reject delegation to national employees. Without a
form of trust to bridge the divide imposed between supervisor and employee, there is
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little likelihood of the reported benefits of social capital coming to fruition. Tanmia
(2004) attributes this level of distrust to previous employer experiences of substandard
skills that they encountered with previous cohorts of GCC nationals. Whilst the
private sector has issues with nationals, Freek (2004) found that this lack of trust
contributed to nationals’ preference for the public sector. Trust is therefore a theme of
social capital, which is studied in this thesis.
4.2.3 Gender Inequality
The role of females in the workforce expanded in recent years in most countries
(Powell 1999); however, gender inequalities continue to generally subordinate,
marginalise, or undermine females in the labour force. Professional women advance
more slowly, are less likely to reach senior levels, and earn less than males (Konrad et
al. 2000; Reitman & Schneer 2000; Valian 1998). According to Mott (1998, p.26) ‘…
women of all ages remain under-represented in skilled career fields due to
misconceptions regarding gender-specific abilities and preferences, and under-
valuation of women’s skills’. There is a significant variation in wage differentials
between countries. For example, women in US faculties earn from 88 per cent of male
incomes at professor ranking, to 93 per cent at associate professor, whilst a
Uruguayan study found that professional women earn only 52 per cent of the salary of
similarly qualified males (Okpara et al. 2005; Wirth 2000). Australia, however, is a
leader in gender remuneration, with female graduates earning 96.8 per cent of the
salaries of male graduates (Wirth 2000). This is presumed due to a centralised wage-
fixing system, equality in education attainment, and large-scale female participation in
the workforce. Thus, given differences in culture and social development, Australia
may still stand as a model to UAE in work participation, and thus lead to an increase
in the number of Emirati females in the workforce. Gender inequality is a theme
pursued in this research. (see Section 6.1.4, Section 5.6.2, Section 7.2.4, Section 7.3.3,
and Chapters 8 and 9 throughout).
Participation in the Labour Market: In Arab countries, however, traditionalism
and the recent emergence of women into public life dictate against the rapid
integration of women into all levels of the labour market. A study by Abdalla (1996)
of 5,974 women in Kuwait and 7,382 in Qatar found that the limited participation of
women in the labour force is related to Arabian Gulf traditions and values, which date
back to the pre-oil era. Metcalfe (2007) in Bahrain found limited support for female
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employment, whilst Mostafa (2004) in UAE had a similar result and also commented
that in the future, modernity could decrease patriarchal attitudes towards women in
Arab society. Employment constraints facing Lebanese women are classified by
Jamali et al. (2005) as, first, stereotypes within corporate culture, that is,
organisational policies and practices that hinder women’s development; and secondly,
the wider socio-cultural environment and behavioural expectations toward women.
Mensch et al. (2003) confirmed this approach, finding Egyptian teenagers evinced
strong traditional attitudes on gender roles; were patriarchal and were strongly
supportive of family values. There are attempts to redress these imbalances. In
Morocco and Kuwait, Islam is used in a progressive sense to promote equality
(Moghadam 2004; Zuhur 2003; Wadud 1999). However, Al-Lamki (1999) challenged
the persistent western view that Arab women are repressed. This is confirmed to a
point with UNDP (2003) Human Development Reports of Arab women’s increased
participation in the workforce in selected GCC countries; however, there is
insufficient evidence across Arab nations to generalise on women’s participation.
Parenting Constraints: Determinants of Arab women’s participation in the
workplace are the age at which they marry, and the number of children (Al Qudsi
2006). Omani females marry at an average age of 16.9 years, and as many Omanis
reach parenthood before they enter the labour market, this reflects the limited time the
remainder of women work before leaving the workforce, or managing parenting with
employment. Again, these statements cannot be generalised to all Arab countries, as
the average age of marriage is unknown, and women are in fact pursuing their careers
after marriage. Also, modernisation and globalisation have a deep impact on changing
the perception of Arab societies in terms of family size and working women. Adam
(2003) found that training opportunities and career progression are limited and very
slow, factors that have impacted on UAE females’ contribution in the workforce.
Further, for the majority of married women, the ultimate responsibility is to care for
children rather than applying for work. Adam’s observation is based on economic
prosperity in UAE, good social security and the fact that financial maintenance of the
family is strictly a male domain. A further hindrance is a UAE policy issue, parental
leave of a mere seventy days, which is insufficient for the majority of women and a
great disincentive to leave young babies for full-time work. This suggests that parental
responsibilities constrain women from contributing in the workforce.
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Social Capital Theory: A further contention is that women’s lower earnings are
due to gender inequalities in social networks, and these differences could explain their
differential achievements (Talmud & Izraeli 1999). In social capital structures (see
Section 4.2.3), the weak ties theory links individuals on the basis of a narrow range of
interests and common ties to others external to the immediate groups, and does not
reinforce relationships. This suggests that women, who tend to have less weak ties,
have less access to informal resources, which are so important (Burt 1992;
Granovetter 1983; Ibarra 1993). Females are thus at a disadvantage because the
network formed by females is characterised by strong ties among closer groups, while
males display weaker ties to a larger network of people (Podolny & Baron 1997).
However, Granovetter’s results are not shared by Coleman (1990), who placed greater
stress on strong, close relationships and networks when building social capital.
Coleman may hold out greater hope for females and their ability to use social capital
in the labour market (Timberlake 2005). These results tend to point to strong and
weak ties as a continuum rather than as opposites; as a balance of both tends to effect
the greater benefit.
Gender Inequalities: The situation of gender inequalities in UAE, as a
traditionalist Arab country, is shared to a greater or lesser extent with other GCC
countries; however there is little research on the issue (Whiteoak et al. 2006). UAE
society is generally regarded as highly patriarchal, with clear-cut gender roles backed
by fiat; for instance, a woman’s earnings must be less than a man’s for the same job
(Baud & Mahgoub 2001). Whilst discrepancies are known to occur in practice, over
one third of women in the workforce acknowledge such dissimilarities in earnings
(Tanmia 2005; Baud & Mahgoub 2001). Impacts on earnings discrepancies are
attributed to slower career development (Adam 2003), lack of promotion, and thus
resignation (Baud & Mahgoub 2001).
Management Role: Women have an insignificant presence in senior
management ranks in most countries (Wirth 2000), although this is slowly being
addressed; in New Zealand the proportion of women as senior managers rose from 19
per cent to 27 per cent; in Slovakia, from 23 per cent to 30 per cent. Other countries,
such as Spain and the United Kingdom have no change over the period, whilst there
has been a decline in women’s proportions in senior management ranks in the Czech
Republic, Belgium, Greece and Poland (ibid.). Talmud and Izraeli (1999) argue that
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women are more likely to be in low-paid jobs or low-opportunity career paths.
However, culture differences in the perception of power and authority could also be
an important element explaining female exclusion from management. Eagly and
Johannessen-Schmidt (Timberlake 2001) state that, due to men having held
management positions for a long time, they tended to define the style to which
individuals have become accustomed. Wirth (2000) draws further attention to the fact
that increased time and work pressures have a negative impact, which discourages
females from taking more responsibilities.
As a corollary to these observations, Al-Lamky (2007) argues that the low
proportion of women in Arab senior management is a matter of motivation, although
Mostafa (2004) opts for the prevailing assumption that in UAE males are perceived as
the primary breadwinners. The matter rests that stereotyping is an issue for
professional working women, particular for those in high positions (Al-Lamki 1999;
Baud & Mahgoub 2001). This may only be addressed through introduction of an
affirmative action policy and program implementation, modernisation and the effects
of the female surge through tertiary institutions.
Summary: Cultural attitudes, stereotypes of the status and role of women are the
main concerns in the Arab Islamic society (Al-Lamki 1999). Whilst conditions
improve in areas such as education, health and employment, women in UAE continue
to face many challenges regarding equality; not least, discriminatory legislation. As
noted above, gender inequality is examined as a deciding factor for Emirati
employees.
4.2.4 Wasta (Nepotism)
Wasta refers to Arab patronage, ‘both the act and the person who mediates or
intercedes’ (Cunningham & Sarayrah 1993, p.1); but in practice it is favouritism and
nepotism, showing precedence to family and kin over organisational objectives
(Branine & Analoui 2006). Wasta is a person’s ability ‘to utilize connections with
people, who are both able and prepared to change the course of natural events on the
person’s behalf’ (Whiteoak et al. 2006, p.81). Cunningham and Sarayrah (1993)
conclude that wasta has two distinct roles; the first is positive, legal and moral, for
instance, solving interpersonal and inter-group conflicts, and the second is negative,
illegal or questionable; for example, the gain of economic benefits others are
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prevented from accessing (Cunningham & Sarayrah 1993; Whiteoak et al. 2006).
Wasta is usually regarded in negative terms, negating the traditionally positive role it
played in mediation (Hutchings & Weir 2006). The use of wasta in its negative form
is prevalent through the GCC countries, including UAE, and is a significant element
in employment prospects. However, there is a cultural change in attitude towards
wasta in rapidly modernising Arab societies such as the UAE. For example, recent
research indicated that wasta is becoming less acceptable in modern organisations
which, to improve performance and remain competitive, must rely more on
qualifications, skills and talent than on 'connections' when selecting and rewarding
employees and managers (Mohamed & Hamdi 2008).
Employment: In the recruitment process, wasta occurs when a candidate uses
influential family or tribal connections to intercede with a potential employer (or
potential promotion) on the candidate’s behalf. Wasta is used in the public and private
sectors to obtain employment in face of a candidate’s substandard qualifications for a
position (English fluency, competency, attitude) to the extent that the majority of job
seekers do not believe a job can be obtained without wasta assistance.
Wasta has a direct effect on the functioning of HRM and HR policies and
practices designed to meet organisational objectives (Ford & McLaughlin 1986). In a
Chinese version of wasta, Tu et al. (2006) found that performance measures were not
the criteria for reward for well-connected employees, but the strength of their
connections dictated salary levels. These practices occur with sufficient frequency in
GCC countries to negatively impact organisations’ effectiveness and productivity.
Withdrawal of commitment, and eventual resignation of those in the workplace who
are negatively affected, are major organisational outcomes of wasta in both business
sectors (Hayajenh et al.1994).
Challenge: As a deep-seated social problem, wasta is extremely hard to correct;
privatisation or cultural solutions cannot eliminate it. Hayajenh et al. (1994) define the
following environments conducive to wasta
• Socio-cultural structure (tribal and kinship relations)
• Economic structure (a tight labour market making it difficult to find a job in other
ways)
• Educational structure (poor preparation of workers for economic development)
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• Government structures (insufficient checks and balances to monitor wasta).
The focus of this research is on the last point, because this is the area most open
to change through government action. It appears that there are insufficient
government policies and legal constraints controlling wasta, due to the propensity of
GCC countries to avoid sensitive and negative social issues. Further, Whiteoak et al.
(2006) and Hutchings & Weir (2006) report a greater interest in wasta by Arab youth
of today than that of the older generation, a clear statement that young UAE nationals
rely on corrupt practices instead of using their own initiative to win jobs. This
researcher considers that wasta has negative effects in business due to its undermining
of organisational principles and performance. Therefore, this research will examine
whether wasta is a factor in UAE nationals’ employment (see Section 5.1.1, Section
5.4, Section 6.1.4, Section 7.2.4, Section 7.3, Chapter 8 throughout, and Section 9.4.3)
4.2.5 Family Influence In a literature review of GCC and UAE social trends, a search drew some
indication of family influences over choice of career for their children. Family input
may occur if a proposed career conflicts with religious beliefs, such as Islam’s
prohibition on interest-bearing financial arrangements (see Section 2.4.2), generally,
the potential for gaining a job overrules such inhibitions. Further, the pace of
development of UAE’s economy and the potential for young Emiratis to be
independent from the economic ties of their families promotes career interest and
expectations. Freek (2004) believed young Emiratis selected a job on their preferred
career interests and remuneration prospects. Therefore, family influence on job choice
as a determinant of unemployment is not pursued further in this study.
4.2.6 Social Capital Summary There are two cultures in UAE. A visitor’s impression of Abu Dhabi and Dubai,
which have the greater proportion of population, is of Arab-themed global cities.
Indeed, there are qualified expatriates who finish their two or three year contracts
maintaining that impression. However, they reside in UAE, a country where
government is absolute and Islamic-based, Shari’a and secular law are practised side
by side, where the days of a weekend differ, where the mores of family and tribe
differ significantly from the visitor’s homeland. Yet social capital principles reside in
the trust of familial strong ties and in the transitory weak ties formed partly through
workplace connections (Granovetter 1973).
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UAE’s linear human capital equation depicting learning acquisition by students
directly applied through accessing a career is proving problematic when the inputs of
education and assumptions of work-ready graduates do not coincide. The support of a
civil society, the framework of trust brought through ties of the indiviual to others in
that society, are increasingly studied as more complex responses to social
infrastructure issues (Putnam, 1993).
The thesis’ objectives might at least partially depend on the development of civil
society. Whilst the government pursues its human capital programs, the existing
familial structures may offer a means to extend ties from the Islamic UAE culture
through to the global UAE culture and thereby address issues of unemployment and
under-employment. Nevertheless, traditionalism, or strong familial ties, contains its
issues of gender and wasta. UAE sustainability and social order is supported by the
creation of sufficient jobs for Emiratis to enable the country to broaden its income
base and promote a dynamic private sector. Thus the following research questions are
proposed:
• Identify the factors to enhance placement and retention of UAE nationals in
Dubai workplaces
• Establish whether these factors differ for organisations in the public or private
sectors
• Explain variations in UAE nationals’ engagement with their organisations
(Section 3.7).
4.3 Organisational Capital Theory This section examines organisational capital; first definitions in the literature;
next, the role of HRM in Emiratisation is explored. The discussion then moves to an
important factor of organisational capital, namely, human resource components:
remuneration, working conditions, promotion and career development. In the final
section, the organisation culture is examined, followed by the ability of UAE
nationals as work team members.
4.3.1 Overview and Definitions
A growing body of literature over the past decades suggests that organisational
capital can contribute in significant ways to the productive capacity of a firm. The
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concept of organisation capital is quite controversial; as a result, there are many
definitions. A definition embodying human capital is that of Tomer (1987, p. 24)
…human capital, in which the feature is embodied in either the organisation relationship, particular organisational members, the organisation’s repositories of information, or some combination of the above in order to improve the functioning of the organisation.
Reflecting the rise of knowledge management, Damaskopoulos et al.(2002, p. 2)
present the following
a process of knowledge management and knowledge creation and its deployment for organisational change and continuous adaptation to a dynamically changing and intensely competitive environment.
Taking a physical capital approach, Belkaoui (2003, p.540) uses a legalistic
definition for organisational capital
…the firm’s internal structure; also encompasses patents, models, concepts and administrative and computer systems, or knowledge that remains with the firm apart from its members
The three definitions, largely reflecting the research themes of their
contemporaries, illustrate the absence of conformity in the research approach.
However, this thesis associates itself in principle with Tomer’s because this definition
embodies relationships between human capital, organisation members and databases.
It is comprehensive and suited to the UAE community. However, Damaskopoulos et
al. (2002) definition adopts a social capital approach, incorporating elements of trust
and networks. In comprehensive literature reviews on organisational capital, Bennelt
& Gabrieb (1999); Gratton & Ghoshal (2003); Kannan & Aulbur (2004); and Ravn
(2004) collectively identified five issues regarding the organisation concept and its
effects on organisational capital: knowledge management, teamwork,
communications, level of bureaucracy, job security, and research and development.
The following discussion, commenting on these matters, commences with the
operation of organisations in an emerging culture.
4.3.2 Civic Environment
Of particular concern to the research question in this study is the interaction
between commercial enterprises and the civic or social environment in which they
operate, that is, UAE norms and culture (Boxall 1999). Social legitimacy is of concern
to organisations who use human capacities that people and the country have
89
generated; for instance, public education (Boxall & Purcell 2003). According to
Paauwe and Boselie (2005), failing to meet objectives of social legitimacy and
fairness can lead to perceived injustice by stakeholders within an organisation. Baron
and Kreps (1999, p.106) state that
People care deeply about being treated fairly… the evidence suggests that people can and do distinguish their own absolute outcomes for two key dimensions of justice: distributive, or how they did relative to others: and procedural, the process by which the outcome was achieved.
The organisation’s status is one element of its ‘social legitimacy’, which also
includes its commitment to the values of the society that supports the firm’s markets,
to its employees, and its impact on the natural environment (Boxall & Purcell 2003).
Whilst the rapid emergence of an Islamic economy may lie on different foundations to
the established economies, the subject of other research, globalisation has arguably
the greater effect. In this study, social legitimacy for an international organisation
operating in UAE includes the use of flexible human resource management practices
(HRM) to fulfil a commitment to Emiratisation. The degree to which organisations
use HRM policies in recruiting and maintaining the employment of UAE nationals is
therefore a criterion in commitment. Rees, Mamman and Bin Braik (2007) find that
HRM practices in UAE organisations are financially oriented and lack attention to
structural reform, particularly in the field of change management that includes
Emiratisation (ibid, p.39):
This ‘lack of understanding’ surrounding Emiratization is reflected in the paucity of information . . . from both academics and practitioners especially those who are working within the UAE. In the absence of a clear national framework, fragmented and individualistic efforts will prevail unless there is a process of information sharing and vicarious learning among academics and practitioners relating to Emiratization.
4.3.3 Human Resource Management
Human resource management is an essential factor in the formation of
organisational capital. HRM has a fundamental role to ensure that culture and
strategies are aligned to organisational goals. Thus, this researcher considers HRM a
cornerstone of organisation capital and this study explores its impact on employees
and job satisfaction. Whilst HRM is a designated area of responsibility, it manages a
number of HR components for the organisation: recruitment, reward system, working
conditions, and professional career development. All business-oriented organisations
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above a minimum size have formal or informal HR policies and procedures, generally
both. (see Section 5.4, Section 5.3.1, Section 5.6.9, Section 5.7, Section 7.2.3, Section
7.3, and Chapter 9 throughout).
Human resource policies are defined, according to De Cieri and Kramar (2004,
p.246), as ‘organisational decisions that affect the practices and systems that, in turn,
influence employees’ behaviour, attitudes and performance’. Smith and Mazin (2004)
and Arthur (1994) report that HR practices enhance employee understanding of
organisational rules and expectations. Many scholars such as Barbeito 2004;
Nankervis et al. 2005; and Stone 2002 state that HRM has a fundamental role to play
in encouraging, supporting and rewarding desired behaviours that are a focus of action
between line managers and employees. Aspects of employee performance that
significantly contribute to the organisation’s viability, according to Boxall and Purcell
(2003) are increased labour productivity, organisational flexibility, and social
legitimacy. Nevertheless, Mabey and Thompson (2000) found policy communication
a key determinant of implementation.
Labour productivity: Cost effectiveness is a significant factor in organisations,
and a primary goal of management (Geare 1977; Heneman 1969; Osterman 1987). At
a strategic level of HRM, cost effectiveness is a combination of HR strategy, policies,
processes, programs and practices creating the human performance are required, and
at a rational cost (Godard 2001; Boxall & Purcell 2003).
Labour flexibility: This is a strategic goal where HR can contribute (Sharp et
al. 1999; Dyer & Shafer 1999). When circumstances force a change to organisational
goals, the firm’s ability to adapt quickly to the new environment is dependent on its
members’ ability to react. HR contributes here through operational and professional
forms of training that build skills in creative thinking. Bhattacharya and Wright
(2004) state that the capability to operate with flexibility and preserve the human
capital in dynamically shifting business situations is vital to agility. However, there is
tension between short-run flexibility to respond to an immediate crisis, which may
provide short-term relief that disguises the need for a strategic change of direction for
the organisation as a whole (Boxall & Purcell 2003). HRM is therefore a crucial
element in an organisation, as it acts as a facilitator between the organisation’s goals
and its achievements.
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Remuneration: remuneration refers to all forms of pay or rewards to employees
arising from their employment, and it has two main components. There are direct
financial payments in the form of salaries, commissions and bonuses, and indirect
benefits like subsidised childcare and tax assistance (Desseler et al. 2007). Many
studies recognise the importance of job satisfaction, and that remuneration is a large
factor in that satisfaction (Lawler 1971; Heneman 1985). The importance of pay
satisfaction lies in its association with a number of ‘downstream’ attitudes such as
organisation citizenship behaviour (Miceli & Mulvey 2000), organisation
commitment (Kessler & Heron 2006) and, with reference to this study, ‘quit’ rates
(Heneman 1999). Kramar (2004) strongly argues that the positive influence of new
work designs and new technology on productivity can be damaged if employees are
not satisfied with level of pay and benefits or if they believe pay and benefits are
distributed unfairly.
Distributive justice theories impact on pay level satisfaction. Equity theory,
relative deprivation theory and social exchange theory find that individuals react
positively if they consider that the outcomes (remuneration) that they receive are
relatively fair (Adams 1965; Crosby 1976; Brockner & Betia 1996). However, Adams
(1965) argues that people who feel over-rewarded try to improve their performance, a
point negatively debated by Rose (1994) cited in Boxall & Purcell (2003), who
suggests that many are quite happy with this inequality. Mowday et al. (1982) find if
organisations satisfy employees’ needs via pay or other methods, employees
reciprocate with commitment to their organisation. Further, premium salaries assist
lower employee turnover, improve the quality of job applicants and improve
employee morale and cooperation (Main 1990; Akerlof 1984). However, Folger and
Mary (1989) argue that different components of pay satisfaction may have different
consequences: salary satisfaction may conflict with pay administration. In this study,
salary satisfaction for Emiratis carried the connotations of disparity between a
performance-driven market economy and a public service where different conditions
of adequacy applied. Expectations were therefore skewed toward the remuneration
levels of the unattainable public sector organisations, not as a premium salary, but as a
norm that the private sector would not consider.
Salaries, promotional prospects and working conditions in UAE private sector
significantly impact nationals’ employment interest in the sector (Al-Lamki 1998;
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Tanmia 2004; Berengaut & Muniz 2005; Freek & Nelson 2004). The remuneration
differentials could be partly addressed by the public sector restructuring its munificent
remuneration and working conditions (Elhage et al. 2005).
Working Conditions: Workplace conditions form the business operations and
environment that support employee attitude, health and safety, and work/life balance.
Working hours, in particular, have a significant impact on job satisfaction, retention of
employees and motivation (Kapur et al. 1999; Machin 1999; Clark 2001). Long hours
working on a high quality job may give more job satisfaction than long hours on an
operational job; however, due to the different motivations of individuals, this is not
always the case (Ganster & Bates 2003). The quality of the work may be of less
regard to many UAE employees than being in a supportive environment (Freek,
2004).
Working conditions in the Gulf region differ between firms. Numerous studies
show that nationals will not accept long working hours, shifts that include weekends,
reduced vacations, punctuality and disregard of cultural perspectives (Abdelkarim &
Ibrahim 2001; Al-Mansory 2003; Kapiszewski 2004; Madhi & Barrientos 2003;
Willoughby 2005). Further, Madhi and Barrientos (2003) found in their study that 66
per cent of Saudis dislike working in the private sector if a split shift is involved.
Tanmia (2004) in its study on Emiratisation suggests private sector attention to the
issues of shift restructure to eliminate split shifts and weekends and introduce flexible
work hours and longer holidays; part-time work and job-sharing. There are few
opportunities for part time or flexible work arrangements in either business sector in
the UAE. As noted, UAE nationals prefer the public sector for its shorter hours, full
weekends and substantial annual leave (Berengaut & Muniz 2005). Further, the
public sector emulates the culture and religious observances of UAE nationals, such
as prayer times especially on Fridays, and fasting during the month of Ramadan
(Ahasan et al. 2001). It is clear that working conditions are significant for employees
and UAE nationals in particular. Hence, this research will investigate this factor to
assess whether work and working conditions impact on the performance of UAE
employees
Promotion: Opportunities for promotion have a significant positive influence on
organisational commitment; conversely, failure to obtain promotion results in an
increase in absenteeism and decrease in commitment (Beehr et al. 1980; Zaccaro &
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Dobbins 1989; Quarles 1994; Souza 2002). Markham et al. (1987) cited in Souza
(2002, p.226) note that,’viewed from a human resources management perspective,
promotion enhances human capital and deploys it more effectively, thereby improving
job performance and increasing satisfaction and commitment’.
Career Development: Being satisfied with one’s career is an important element
of personal happiness, as the workplace is an area where social equity and personal
fulfillment can be achieved (Sharf 2006; Noe 2005). Career theory focuses on success
in terms of extrinsic outcomes, such as remuneration (Super 1957; Sharf 2006) and,
more recent definitions of career success include subjective assessments as well,
including career advancement impacted by gender, race, education, job title and
unemployment (Gunz & Heslin 2005). Further research finds that employees seek
fulfillment through learning and developing through different types of job
assignments (Bridges 1995; Hall 2004). Management’s role therefore includes career
development so that individuals are positive about their career and cooperative in the
workplace and thus provide organisations with the flexibility they seek for an
increasingly competitive global market (Garden 1990; Kaye 1993; Bridge 1994; Nabi
1999; Adelle & Bradley 2004). Similarly reflecting on motivated workers, Laesson et
al. (2007) state that organisations can increase motivational impetus in employees by
offering tailored professional career counselling to employees, who understand the
pace of change and are increasingly conscious of the accelerated obsolescence of
skills and knowledge (Cheng & Ho 2001). Work practices such as job rotation and job
enrichment are further means to offer employees a changing work environment and to
allow the organisation flexibility in its operations and planning (Belcourt et al. 1996).
Career development in UAE, and the GCC in general, is quite undeveloped, with
an absence of government direction for life-long learning, and a corporate
environment where skilled labour is a commodity that non-nationals readily fulfill
(Freek 2004). Job satisfaction, especially in career progression of UAE nationals is an
imperative motivational factor that is overlooked in the private sector and further
impetus for Emiratis to join the public sector with its automatic career progression by
length of service (Jain 2005; Abdelkarim & Ibrahim 2001). Private sector employers
are advised to develop a career plan for employees including employee training
(Abdelkarim & Ibrahim 2001; Freek 2004). In 2001, a UAE National Labour force
survey showed little interest by firms in their employees’ career prospects and UAE
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nationals identified career progression as major reason that affected their retention
with their last employer. Thus, a role for HRM in UAE is that of defining the
organisation’s job specifications, developing an organisation chart which is
sufficiently flexible to withstand reorganisations, and allow UAE nationals to plan
their careers. HR professional education opportunities can then be made available to
employees. Career development is therefore a useful strategy for private sector firms
to use to encourage and retain staff, including UAE nationals and this study includes
this as a major HRM component. (see Section 6.1.4, Section 5.6.4, Section 5.6.7,
Section 5.7, Section 7.2.3, Section 7.3, Chapters 8 and 9 throughout).
English Fluency: A significant change-taking place in today’s workplace is
linguistic ability. Whilst localised firms can utilise the common language, or
languages, of the marketplace, globalisation dictates that the lingua franca of cross-
border trade and communications is rapidly becoming English. English language
fluency undoubtedly affects employability, and Gulf employers prefer bilingual
workers so that they may readily communicate with their clientele. Fluency in
English assists the employment prospects of job seekers in many developing
countries and in UAE specifically, to acquire knowledge in the rapid growth in
technology in different fields of studies.
Deficiency in English fluency is a main source of unemployment. Abdelkarim
(2001a) investigating the attitudes of 1300 UAE private sector employees found that
32 per cent of respondents said that English language training should extend right
through schooling and tertiary education. On a follow-up study with Saudi students
by Samman (2003), 60 per cent of students reported they were not proficient in
English, including 70 per cent of science male students. Thus, the younger generation,
who face a highly competitive job market, recognise that English fluency is a critical
asset in job seeking. Consequently, this research investigates these factors to evaluate
English fluency’s effects on UAE nationals in the workforce in UAE.
Workplace Matters: Research findings regarding possible employee concerns of
job security, communications with management, and working in teams were found not
to be of issue, as participants to various studies reported these satisfactory
(Abdelkarim 2001; Al-Dosary 2004; Freek 2004; Ali 2004; Al-Lamki 1998). Thus,
these matters will not be investigated as part of this study.
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4.3.4 Organisational Culture This section explores extant literature on organisation culture and its effect on
employees’ performance. Organisations without the flexibility or knowledge to improve
a dysfunctional culture cannot continue superior performance, thus understanding an
organisation’s culture is significant because if affects strategic development,
performance, productivity and learning (Barney 1986; Schneider 2000). This section
reviews the impact of organisational culture on job performance and the effects Gulf
countries, especially the Emirates.
Definitions: Organisational culture, which is emerging as a significant part of
organisation studies, can be defined as the values, attitudes, beliefs and behaviours that
represent an organisation’s working environment, its objectives and vision (Hofstede
1984; Carmeli 2005). From a sociological view, organisational culture comprises the
values, assumptions, norms and tangible signs (artefacts) of organisation members and
their behaviours (Hofstede 1980; Denison 1996). Culture is a direction to guide their
roles of organisational members as actors (Harris 1988; Schneider 1972). This adds
social factors to the classic psychological definition of culture is ‘the collective
programming of the mind which distinguishes the members of one organisation from
another’ (Hofstede 1991, p. 180).
Performance: Organisational culture has important effects, enhancing
organisation performance and thus gaining the organisation greater leverage in the
marketplace (Pascale 1985; Dension 1990; Van der Post et al. 1998; Deborah & Paul
2000). However, it could be argued that performance is not dependent on the strength of
the culture, but the type.
Studies on employee commitment demonstrate that organisation culture has a
direct impact on job performance:
• Job satisfaction (Robbins 1996), but not to a significant degree (Chang & Lee
2007)
• Pro-social behaviour (O’Reilly & Chatman 1986)
• Absenteeism (Angle & Perry 1981)
• Turnover and turnover intention (Mckinnon et al. 2003; Poznanski & Bline,
1997).
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Organisational culture has a significant role in-group functioning, acting as a
moderator for group diversity and intra-group conflict, based on the degree of value
similarity and the value content shared among group members (Chuang at el. 2004).
Whilst this review of the impact of culture on organisational performance relates to
individuals and to a lesser extent groups, the nature of the culture itself is called into
question. This will be discussed next.
Arab Relationships with Organisations: There has been little research into the
social effects of profit-oriented corporations on their few GGC national employees.
Research tends to focus on the negative variables that form a barrier to national
employment, or localisation, and records the responses of corporate employers. These
responses are defensive, or cite temporary programs that fall away (Freek 2004; Fasano
& Goyal 2004). In the instances where the impact of corporate culture on localisation is
investigated, it is found to be antipathetic to Arab sensibilities (Al-Rahimi 1990; Al-
Shammari 1994) For instance, Suliman (2001) examined the association between
organisational culture and conflict in Jordanian industries, finding a significant, strong
and positive relationship between them. This finding was replicated in UAE, where
Abdelkarim (2001) found that UAE organisations rely on monetary rewards and
bureaucratic management to minimise employee turnover. Of importance to this study,
Suliman (2006) states that UAE organisations cannot establish a strong corporate
culture that can compete with social environmental factors in influencing employee’s
behaviour, as is the case in most developing countries. This is confirmed by Freek
(2004), who stated that UAE nationals are ambivalent regarding cultural diversity,
which may relate to nationalities in their work teams. The means to develop improved
work-related cultures in the private sector is placed by commentators with UAE
authorities (Al-Lamki 2000; Al-Dosary 2004) to develop and promote localisation,
despite the freedom afforded in the Gulf region against government interference with
the private sector. Consequently, this research explores Arab culture’s influence on
UAE nationals’ employment and engagement with their organisations (see Section
5.1.1, Section 6.1.1, Section 5.6, Section 7.2.3, Section 7.3, Chapters 8 and 9
throughout).
The extensive survey of organisational literature reflects different approaches over
the last several decades to theorise on employee behaviour and engagement with the
firm’s goals. Most studies emphasise organisational structures and strategies: the
97
structures in place to promote performance, or the role of HRM in organisation culture.
It is argued that, in the Gulf region, private sector firms must continue to establish
themselves, but now as permanent entities. To date, their existences are characterised by
swift growth and high profit margins; whilst growth continues, it is now necessary to
establish corporations as stand-alone permanent entities of their international and local
owners. Thus, there is a need to establish a platform for future growth based on
meaningful dialogue with the authorities and with the societies in which they operate.
Organisations that will survive in the 21st century must engage with the host country
and adopt practical approaches to localisation (Tricker 1998). The impact of
organisational culture on job performance and its effects on UAE nationals is therefore
part of this study (see Section 8.6, Chapter 9 throughout).
4.4 Theoretical Framework This chapter discusses human capitals such as knowledge, experience and skills;
social capital in job seeking and teamwork when in employment; and organisational
capital such as remuneration, a suitable culture and career development. The
discussion indicates that when these are treated as unrelated concepts, they are
proving insufficient policy tools for successful Emiratisation.
4.4.1 Development of Constructs Together, human capital, social capital and organisational capital create a
conceptual framework for building strong and supportive relationships, and for
developing an action environment. This framework is illustrated at Figure 4.1
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Figure 4.1: Theoretical Framework for Emiratisation
Human Capital Social Capital Organisational Capital
1. Education 2. Training development 3. Organisational engagement 4. Experience/skill
1. Gender inequality2. Trust 3. Wasta (Nepotism)
Human Resource management 1. Remuneration 2. Working condition 3. Promotion 4. Career development5. English langue 6. Organisational
EM
IRA
TISA
TIO
N
In the following section, developing hypotheses logically tied to a research
question or supported by theory will be discussed. Table 4.1 Categorisation of
Constructs and Scale Items, summarises the literature survey at this point in the thesis.
The development of the hypotheses for this study occurred in stages and, as
shown in Table 4.1, identified several themes emerging from the literature, with the
intention to test theory in regard to antecedents and inputs to address UAE nationals’
unemployment through theory, research and application.
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Table 4.1:Categorising of Constructs and Scale Items Constructs Scale items Section References Human capital
Education
4.1.2
OCED 2001; Molhotra 2000; Human Development Network 1999; Bontis 2004; Heyneman 1989;Siemens 2002; De Cieri and Kramar 2003; Stone 2002; Krueger and Lindahl 1999;OECD and Canada 2000; Pritchett 1999; Pritchett 1999; Wolff 1995;Kenkel 1991; Henderson 2005; Blanchflower and Oswald 2000; Nie et al. 1996; Morada 2002; Abdelkarim 2002; Tanmia 2005; Ministry of Education 2005; Tanmia 2005; Freek 2004; Abdulkarim 2001; Jakka 1996; Ali 2002; Al-Misad 1985; Abdulkarim 1999; O’Higgins 2001; Sivin and Bialo 1994; Kapiszewski 2001; Pritchett 1999; Alghafis 1992.
Training and development
4.1.4 Atman and Iles 1998; Stone 2002; Skinner and Berfsford 200; Beardwell and Holden 1997; Deborah 2000; Lewis 1997; Dawson 1997; Dessler et al. 1999; Mathis and Jackson 2000; Scullion 1996; Shen 2005; Kleiman 2000; Abdelkarim 2001; De Cieri and Kramar 2003; Kacmar 1999; gray 2001; Tanmia 2004; Morada 2002; Mansory 2005; Al-Ali 2003; Stewart and Wddell 2003;Read and Kleiner 1996
Organisational engagement
4.1.5 Ostroff et al. 2005;Adlkins et al. 1996; Klimoski and Jones 1995; Kristof and Stevens 2001; Ostroff et al. 2005; Klimoski and Jones 1995; Mcleod and Lobel 1992; Dyne and Pierce 2003; Kostova and Driks 2001; Portepus 1976; Greenwald and Breckler 1985; Pierce and Dieks 2001; Furby’s 1978; Schappe 1996; Edgar and Gear 2005; Arthur 1998; Morada 2002; Boninger et al. 1995;
Experience and skills
4.1.3 Al-Otaibi 1992; Freek 2004; Isa and Hala 2001; Lynton 2001; Stephen 2001; Abdelkarim 2001; Al-Manasory 2003; Freek 2004;Bonti 2004; McGregor et al. 2004; TEPL 1999; Selgman 2001;OECD 1999;
Social capital (continued)
Trust 4.2.2 Commission Research Paper 2003; Kwon and Suh 2005; Beccerra and Gupta 1999; Sobel 2002; Knack 2001;Connell and Travaglione 2004; Fukuuama 1995; Davis and Landa 1999; Helliwell 1996; Russel and Stone 2002; Part et al. 2005; Zeffane and Connell 2003; Joseph and Winston 2005; Daley and Vasu 1998; Kern 1998; Stone et al. 2005; Ferres et al. 2004; Joseph and Winston 2005; Al Yahmadi and Debrah 2002; Tanmia 2004, Freek 2004.
Gender inequality
4.2.3 Powell 1999; Konrad et al. 2000; Reitman and Schneer 2000; Valian 1998; Mott 1998;Okpara et al. 2005; Wirth 2000; Wirr and Nye 1992; Lee and Farh 1999; Mostafa 2004; Al-Lamki 1999; UNDP 2003; AlQudsi 1998; Adam 2003; Gutek 1994; Talmud and Izraeli 1999; Eagly and Johannessen 2001; Burt1992; Granovetter 1983; Ibarra 1993; Coleman 1990; Timberlake 2005; Whiteoak et al. 2006; Baud and Mahgoub;Tanmia 2005; Adam 2003; Al-Lamki.
Wasta 4.2.4 Cunningham and Sarayrah 1993; Hayajenh 1994; Whiteoak et al. 2006.
100
101
Organisational capital
HR policies 4.3.4 Sharf 2006; Trads Union Congress 2003; Maclnners 2005; Ganster and Bates 2003; Clark 2001; Kapur et al. 1999; Machin 1999; Abdelkarim & Ibrahim 2001; Al-Enezi 2002; Ali 2004; Al-Lamki 1998; Al-Mansory 2003; Kapiszewski 2004; Madhi and Barrientos 2003; United Arab Emirates 1999; Willoughby 2005; Nadhi and Barrientos 2003; Tanmia 2004; Berengaut and Muniz (2005); Ahasan et al. 2001;
Working condition
4.2.2 Kapur et al. 1999; Machin 1999; Clark 2001;Ganster & Bates 2003;Freek, 2004; Abdelkarim & Ibrahim 2001; Al-Mansory 2003; Kapiszewski 2004; Madhi & Barrientos 2003; Willoughby 2005; Tanmia 2004; Berengaut & Muniz 2005; Ahasan et al. 2001
Promotion 4.2.2 Beehr et al. 1980; Zaccaro & Dobbins 1989; Quarles 1994; Souza 2002; Markham et al. 1987; Souza 2002;
Career development
4.2.2 Sharf 2006; Noe 2005; Super 1957; Gunz and Heslin, 2005; Bridges 1995; Hall 2004; Garden 1990; Kaye 1993; Bridge 1994; Nabi 1999; Adelle & Bradley 2004; Laesson et al. 2007 Cheng & Ho 2001; Belcourt et al. 1996; Freek 2004; Jain 2005; Abdelkarim & Ibrahim 2001
English fluency
4.2.2 Abdelkarim 2001; Samman 2003
Remuneration 4.2.2 Kramar 2004; Stone 2002; Lawler 1971; Jeneman 1985; Christopher 2006; Miceli and Mulvey 2000; Lane 1993; Kessler and Heron 2006; Heneman 1998; Kramar 2004; Adams 1965; Crosby 1967; Brockner and Batia 1996; Rose 1994; Boxall and Purcell 2003; Mowday et al. 1982; Main 1990; Akerlof 1984; Miceli and Mulvey 2002; Folger and Mary 1989; Quarles 1994; Zaccaro and Dobbins 1989; Souza 2002; Harlan and Hackett 1987; Souzq 2002; Beehr et al. 1980; Markham et al. 1985; Al-Lamki 1998; Tanmia 2004; Berengaut and Muniz 2005; Elhage et al. 2005; Freek 2004.
Organisational culture
4.3.5 Carmeli 2005; Barney 1986; Mooij and Hostead 2002; Denison 1996; Harris 1988; Schneider 1982; Keesing 1974; Hofsteds and Jan 2005; Deboeah and Paul 2001; Harvey and Allard 2002; Chuang et al. 2004; Carmeli 2005; Barney 1986; Denison 996; Kilmann et al. 1985; Lee and Yu 2004; Al-Lamki; Al-Dosary 2004; Whiteoak et al. 2006; Hofstede 1983;Whiteoak et al.2006; Zeoneldin 1998;
4.4.2 Development of Hypotheses
A hypothesis is a statement, which requires proof. In this case, a hypothesis
requires specification of its terms and then investigation for a researcher to either
confirm or disprove it. A hypothesis enables predictions, by reasoning (including
deductive reasoning). In framing a hypothesis, the researcher is not in a position to
know whether the hypothesis is valid in relation to the variables introduced. Only in
such cases does the study potentially increase the probability of showing the truth of a
hypothesis.
In this study, the first stage of thesis development, based on an extensive literature
review, required intensive diagnosis (see Table 4.1). Fifteen hypotheses relating to the
research questions concerning barriers to Emiratisation (see Chapter 1). were identified
for testing. The hypotheses, shown at Table 4.2, were derived from analysis of the data
from seven organisations, five from the private sector, and two from the public sector.
The development of these hypotheses and the methodology to test them are discussed
in chapter 8.
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Table 4.2: Development of hypotheses Hypotheses Statement Rationalisation
see section
H1 There is a significant correlation among all the variables of human, organisational and social capitals 4.1, 4.2, 4.3.2 and
4.3.5 H2 There is a significant correlation among human, organisation and social capitals
4.1.2, 4.1.3, 4.1.4, 4.1.5, 4.2.2, 4.2.3, 4.2.4, 4.3.4 and 4.3.5
H3 There exist significant variance in mean scores between the public and private sector organisation among ten sets of variables namely, organisational engagement, training and development, organisational culture, career development, remuneration, English Fluency, gender inequity, trust, social justice and wasta
4.1.5, 4.1.4, 4.3.5, 4.3.4, 4.2.3, 4.2.2 and 4.2.4
H4 There exist significant variance in mean score among three sets of constructs namely human, organisational and social capitals in public sector and private sector organisations
4.1,4.2 and 4.3
H5 Human, organisational and social factors of the public and private sectors are independent of each other
4.1,4.2 and 4.3
H6 In the population of UAE nationals, there is difference between the public and private sectors in terms of educational attainment
4.1.2 and 4.1.3
H7 In the population of UAE nationals, there is difference between the public and private sector in terms of job title (demographic variable).
Demographic variable
H8 In the population of UAE nationals, there is a significant difference of years of experience between the public and private sector.
Demographic variable
H9 In the population of UAE nationals, there is a significant difference of age between the public and private sector employees (demographic variable).
Demographic variable
H10 In the population of UAE nationals, there is a significant difference of gender between the public and private Demographic
103
104
sector (demographic variable).
variable
H11 In the public sector organisations education attainment is more require than the private sector organisations (demographic variable).
Demographic variable
H12 In the public sector organisations, after controlling for the demographic set of variables (gender, age, job, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisation climate, career development, remuneration and English fluency) will explain unique variance in the personal factor variable of organisation engagement
4.1.5, 4.1.4, 4.3.5, 4.3.4, 4.2.3, 4.2.2 and 4.2.4
H13 In the public sector organisations, after controlling for the demographic set of variables (gender, age, job, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisation climate, career development, remuneration and fluency language) will explain unique variance in the personal factor variable of training and development (see Sections).
4.1.5, 4.1.4, 4.3.5, 4.3.4, 4.2.3, 4.2.2 and 4.2.4
H14 In the private sector organisations, after controlling for the demographic set of variables (gender, age, job, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisation climate, career development, remuneration and English Fluency) will explain unique variance in the personal factor variable of organisation engagement
4.1.5, 4.1.4, 4.3.5, 4.3.4, 4.2.3, 4.2.2 and 4.2.4
H15 In the private sector organisations, after controlling for the demographic set of variables (gender, age, job, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisation climate, career development, remuneration and English Fluency) will explain unique variance in the personal factor variable of training and development
4.1.5, 4.1.4, 4.3.5, 4.3.4, 4.2.3, 4.2.2 and 4.2.4
4.5 Summary
This chapter demonstrates the research challenge of a complex issue in a GCC
country. Whilst the antecedents and inputs to youth unemployment, or disengagement
with their employers when in the workforce, offer research themes under several
theoretical constructs, placing extant research findings in the environment of a
developing country complicates a literature survey. In the case of young Emirati
unemployment, one generation on from the formation of their country, and a focus of
world interest, the research problem involves a literature that does not recognise
disadvantage in a highly advantaged but socially emerging population. Further, the
Emirati population represents a minority in its own country, particularly in the private
sector workforce. The research question could potentially be restated as Why should
corporations care for an Emirati applicant, a national they do not employ? This is a
conundrum that, to be relevant in the world view, Emiratis and GCC Arabs must
address.
Within a capital theory framework, this chapter traces the antecedents and factors
relating to unemployed and under-employed national youth. It examines the necessity
for GCC nationals to acquire skills and knowledge relevant to globalisation through
human capital theory, tracing the burden on youth of a traditional learning system, an
emphasis on subjects that do not align to work-readiness, plus bilingualism. Gaining a
job is paramount to Arab dignity and self-worth, yet training and development after
leaving education is non-existent. Human capital support through life-long learning is
largely absent from the GCC and the private sector. Thus, the purpose of the immense
effort to educate Emiratis simply does not resolve into human capital that UAE can
use. Organisational environment and social capital networks are constrained by the
strong ties of family and tribal relationships, and an inability to access weak ties, as
few Emiratis are working in the private sector. Trust, gender and wasta issues are
discussed as sub-sets of social capital and the dysfunctional aspects as antecedents of
Emirati unemployment. From these discussions, themes are drawn which emerge as a
series of hypotheses on which to base this research.
In this study, the selection of the well-regarded human and social formats of
capital theory is perhaps expected, as they form a great body of knowledge. This thesis
also takes regard of organisational capital, although there is little extant research on the
105
concept. However, from the singular aspect of unemployment, it is argued that, being
centred on the individual, neither human nor social capital fully explain the
phenomenon; but that the capital-generator, the organisation, is the link in theory that is
the final arbiter of unemployment. It re-focus attention onto organisational issues in the
question: Why should corporations care for an Emirati applicant, a national they do
not employ?
To the social scientist, human capital inputs are demographic, educational,
competency and availability; outputs are a successful work life and productive input to
the organisation and thus the country. Social capital inputs are the networks that form
the nation, the nodes of family, tribe and ties, and the drawn lines of contact between
them. The nodes have a support function, the forging of contacts are the beginnings of
an individual’s maturity, personal risk-taking. These aspects of capital theory require a
harmony that allows job seekers to take the risk of failing on a job search or at the
workplace. Driven by human resources, organisational capital represents the
corporation’s sum of accessed human capital, and its physical and intellectual capital.
Yet private sector workplaces are inimical to GCC nationals who see a different
culture, different language, disrespect, demanding and rigourous, and foreign in every
sense of the word. The conclusions of this literature survey could be stated as the
private sector does not employ GCC nationals because nationals do not yet understand
the culture of business (note: to the extent of interest-bearing financial arrangements).
The second part of the literature presents the characteristics of the UAE labour
market, and the long-term consequences of non-national labour in social, economic,
cultural, and political terms. The literature review finds that the imbalance in
population between UAE nationals and non-nationals created anxieties and a sense of
insecurity among the UAE nationals due to their minority status (see Section 3.5).
Therefore, this chapter presents the major issues that could affect UAE nationals in the
long term.
The next chapter discusses the methodology and sampling. In addition, the data
collection method, verification strategies implemented standards and the research
instruments are discussed.
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Chapter 5
Study Methodology and Phase 1 Report
The aim of this study is to develop an understanding of barriers to UAE
nationals’ entry into the workforce and to propose a strategy to address those barriers
and increase Emirati participation in the UAE labour market. To achieve this aim, this
study employs a theoretical framework based on capital theory: human capital, that is,
education, skills, and experience; social capital, such as gender inequality, nepotism
and trust and organisational capital, such as culture, English fluency and human
resource management (HRM).
Based on this theoretical framework, an extensive investigation into the
nominated factors was undertaken to identify obstacles to Emirati employment. As
discussed in Chapter 4, the recent origins of the UAE private sector and its reliance on
non-national labour impact on young national job seekers differently to youth in
established economies such as Australia or the United States.
In this exploratory phase of the investigation, several corporations were
approached. Larger organisations best reflect the exogenous factors resulting from
international organisational culture imposed on the fledgling economy of UAE. The
response from senior management was more than sufficient to identify relevant
variables, including selections from extant research, for the large-scale questionnaire.
This chapter is in two parts. The first discusses the research strategy and the
formulation of the study questionnaire (Phase 2) under constructs of human,
organisational and social capital. It then reports on the administrative and statistical
matters applicable to the overall study. The second part of the chapter refers to a key
informant survey (Phase 1) conducted with senior human resource management from
Dubai’s premier organisations to explore study themes, and the findings under the
constructs and scale items identified in Figure 4.1.
5.1 Research Design
To select the appropriate methodology for this research, a survey of extant
literature was made with two objectives: to meet the criteria of other researchers and
thus enhance the comparability of the findings, and to build on the relevant existing
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research to add to the body of knowledge. Research design is ‘a plan, structure and
strategy of investigation so conceived so as to obtain answers to research questions or
problems. It is a complete scheme or programme of the research’ (Kerlinger 1986,
p.279). In addition, the research design formally defines the procedure for conducting
any study. It describes where, when, from whom, and under what circumstances data
were obtained. McMillan and Schumacher (1993) state that the purpose of the research
design is to present the most valid, accurate results as possible to answer the research
question(s).
Data gained for research may be examined using qualitative analysis,
quantitative analysis, or a combination of both. Qualitative research often relies on
interpretive or critical social science, while quantitative research relies on a positivist
approach to social science (Neuman 2006). Creswell (1998, p. 15) defines qualitative
research as
an inquiry process of understanding based on distant methodological traditions of inquiry that explore a social or human problem. The researcher builds a complex, holistic picture, analyses words, reports detailed views of informants and conducts the study in a natural setting.
A quantitative research design, in contrast, employs a philosophy of emphasised
objectivity and a more ‘mechanical’ technique using standardised methodological
procedures; that is, enumerates and analyses the data statistically (Neuman 2006).
5.1.1 Quantitative and Qualitative Approaches
Both quantitative and qualitative data analyses have their advantages and
disadvantages. Ackroyd and Hughes (1992, p.30) state that neither one is markedly
superior to the other in all respects. The quantitative method allows the measurement
of responses to a limited set of questions from many people, thereby facilitating
comparison and statistical aggregation of data. This obtains a broad set of findings
that can be generalised, presented succinctly and achieves higher levels of reliability
(Leedy & Ormrod 2005; Patton 1990). Further, the quantitative approach minimises
or eliminates subjectivity of judgment and clearly identifies both the independent and
the dependent variables under investigation (Kealey & Protheroe 1996; Matveev
2002). However, the quantitative method has several disadvantages. It does not permit
the evolving and continuous investigation of a research phenomenon. Additionally, it
fails to provide the researcher with information on the context of the situation for the
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phenomenon under study. Finally, it cannot control the environment where the
participants provide the answers to the questions in the survey (Matveev 2002).
The advantages of the qualitative method include flexibility in data collection,
analysis and interpretation; the ability to informally engage with the researcher’s
subjects in their own language and on their own terms, thus extending comprehension
on the data than otherwise available, (Kirk & Miller 1986; Matveev 2002). Therefore,
qualitative research gives participants the opportunity to respond in their own terms,
rather than forcing the participants to choose from fixed responses (Mack et al. 2005).
However, qualitative research is criticised in the literature: the personal and
contextual nature of this approach means standards of validity and reliability cannot
be applied; there may be lack of anonymity for data collection and reporting, in which
case biases may occur; and it is time-consuming (Babbie 2007; Neuman 2006;
Sarantakos 1993). Leedy and Ormrod (2005) state that the qualitative approach
generalises research problems and questions about the phenomenon being studied. In
a case like the UAE culture, influences such as the gender and ethnicity of researchers
can impact on answers by interviewees. In this case, a qualitative approach was used
in the initial phase of the study, the pilot phase, to define the parameters for the main
study.
The literature review in Chapters 2 and 3 reveals perceived obstacles facing
UAE national employees including educational outcomes, work experience and skills,
gender difference, salary levels, working conditions, lack of trust, organisational
culture and wasta. A quantitative approach was selected for phase two of this study,
as it best encompasses the research questions, that is, UAE nationals’ job seeking
abilities; and as employees, factors impacting their ability to fully contribute to their
Dubai organisations. Further, the literature review identifies an absence of
quantitative data in exploring the perceptions of UAE national employees to
statistically identify workplace issues. Previous UAE studies were generally of a
qualitative nature, therefore it is worthwhile employing quantitative research to assist
the comparison of findings under the two approaches; and thus propose better
strategies to assist UAE nationals in the workforce.
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5.1.2 Design Selection
Following the literature review, and based on the research objective and
hypotheses regarding the employment prospects of Emiratis, the methodology for the
study was selected, using a mix quantitative and qualitative pilot survey followed by a
main quantitative survey. Questions for a pilot survey were then proposed; the pilot
conducted and analysed to establish the design for the main questionnaire. Data were
prepared for quantitative analysis and testing hypotheses, and finally conclusions and
recommendations were drawn. These steps are illustrated in Figure 5.1 Research
Process, and are described in detail in the following sections.
Figure 5.1: The methodology, composed and finalised
Research objective and hypotheses development
Data acquisition Methodology
Questionnaire Survey
Literature review
Qualitative analysis of pilot survey
Questionnaire finalised
Research Finding Quantitative analysis and hypotheses testing
Discussion and implication
Pilot survey
Conclusion
To generate the study’s data, this research follows Delahaye (2000), who
determined four stages for data management: investigation, design, implementation
and evaluation. Each stage is a succinct division, as discussed in the following
paragraphs.
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5.1.3 Literature Review
The investigation phase of this research commenced with identification of issues
relating to employment of UAE nationals and the organisational means to address
those issues in UAE and elsewhere. Electronic and printed sources were searched,
with online databases from Victoria University and other Melbourne institutions
searched for books, journals, conference and discussion papers, and annual reports.
The databases used include Business Source Premier, Emerald Library, Education
Online, World Bank Statistic, Tanmia, the UAE Ministry of Education, Dubai
Municipality, UAE Ministry of Labour and Social Affairs, UAE Ministry of
Education, UNESCO Institute for Statistics, UAE Central Bank and Emirates Institute
of Banking and Financial Studies. Printed material included journals, books, reports
and unpublished dissertations.
5.1.4 Research Objective and Hypotheses Development
The objective of this study is to identify variables under three capital constructs:
human, organisational and social; and to propose feasible strategies for greater job
opportunities for UAE nationals (see Section 1.3). The aims of this study are
therefore:
• Investigate human, organisational and social barriers to the engagement of
UAE national employees with their employers, in the public and private
sectors
• Identify differences between public and private sector employees, based on
variables of these constructs
• Develop strategies and policy framework to enhance employability in these
two sectors.
Emiratisation policies to date have not been successful and further restrictions
and enforcement may prove counterproductive if the barriers to employment are
found to be elsewhere. This research comprises quantitative analysis across large
corporations in both sectors to use capital theory components to identify structural,
practical and perceived barriers to Emiratisation.
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5.2 Research Administration
To undertake a study of this complexity approval was sought from the Victoria
University’s Ethics Committee for instruments of intent, consent, anonymity and
confidentiality for both surveys (see Appendix 1). These matters are discussed below.
5.2.1 Ethics Committee Approval
Ethics refer to value conflicts among those in a profession, and these conflicts
occur momentarily (McMillan & Schumacher 1993; Gillespie 1995). Researchers
must therefore remain alert to risk to participants, colleagues and society whilst
attempting to maximise the quality of information they produce. To confirm this
intent, an application for approval for a project involving human participants was
submitted to the Faculty of Business and Law research committee at Victoria
University. The application addressed issues of participant privacy and confidentiality
and potential risks such as discomfort or shyness in answering the questionnaire,
especially with Emirati women. As this researcher is an Emirati, cultural issues could
be recognised early and steps taken to minimise this risk. The Human Research Ethics
Committee approved the letter and participants’ consent form on July 2006 (Appendix
1).
5.2.2 Participants’ Consent
To meet the principles of informed consent to voluntary participation in the
study (Christians 2000; Neuman 2006), a supporting letter explaining the purpose of
the research was sent to each participant of the pilot, reviews, and full study.
5.2.3 Anonymity and Confidentiality
All personal data have to be secured, concealed or made public behind a shield
of anonymity (Christians 2000). Anonymity has the additional advantage of
maximising reliability and modestly improving responses when participants are
confronted with sensitive topics (Babbie 2007; Singer et al. 1995). In this study,
anonymity and confidentiality were stressed throughout, and all reasonable steps
taken; all names and addresses of participants were removed throughout.
5.3 Phase 1 and 2 Sample Selection
Sampling methods, according to Babbie (2007), consist of probability and
nonprobability sampling. Probability sampling is defined as ‘the general term for
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samples selected in accord with probability theory, typically involving some random-
selection mechanism’. Otherwise, nonprobability sampling is ‘any technique in which
samples are selected in some way not suggested by probability theory’ (Babbie 2007,
p.183). Probability sampling utilises the following.
• Simple random, in which the researcher uses a random number table or
similar so that each sampling element in the population will have an equal
probability of being selected
• Systematic sampling is simple random sampling with a shortcut for random
selection
• Stratified sampling, in which the researcher first identifies a set of mutually
exclusive and exhaustive categories, divides the sampling frame by the
categories, and then uses random selection to select cases from each category
• Cluster sampling, which uses multiple stages and is frequently used to include
wide geographic areas in which aggregated units are randomly selected and
then samples are drawn from the sampled aggregated unit, or clusters
(Neuman 2006, pp.227-233).
5.3.1 Method
For the purpose of this study, a nonprobability sampling was selected. First, and
most important, it is acceptable when absolute accuracy is not significant; however, it
often produces samples quite similar to the population of interest. Nonprobability
sampling has advantages of time and cost, as probability sampling calls for greater
planning and repeated follow-up to ensure that each selected sample member responds
(Babbie 2007; Cooper & Schindler 1998). Therefore, nonprobability sampling was the
feasible option for this investigation.
There are four types of nonprobability sampling: convenience, snowball, quota
and purposive or judgmental sampling (Babbie 2007; Neuman 2006; Cooper &
Schindler 1998). Purposive sampling was selected for both phases one and two of this
investigation.
Phase One: In the first phase, Emiratis from seven organisations were
approached on the basis of their knowledge of issues regarding Emiratisation, selected
as representative of business sector expertise and who best meet the purpose of the
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study (Bailey 1994; Cooper & Schindler 1998). In addition, this researcher (an
Emirati) was well aware of the employment issues regarding UAE nationals, which
enabled detailed exploration of the research objectives; thus the sample members, as
20 key informants, were selected with care. The sample members were senior
managers above the age of 25 years, with generally 10 years and above experience.
Phase Two: Purposive sampling was also used in phase two. A relatively new
technique was used which permits the selection of those organisations with a large
number of employees; first, to focus the study since the effect of company size is
controlled, and second, the findings are useful to organisations with significant
contributions to the economy (Davis & Fisher 2002; Khatri & Budhwar 2002). In this
case, the study targeted organisations with a minimum of 200 Emirati employees,
with the additional objective of obtaining sufficient data for analysis.
To obtain candidate organisations for the phase two sample, 15 organisations
with a large number of employees were selected. Ten of these implemented best
policies and practices toward Emiratisation, identified through published award
criteria. An example, used in this study, is the Dubai Quality Group’s annual awards:
the Gold Dubai Quality Award, the Dubai Quality Award and Dubai Quality
Appreciation Program (UAE Department of Economic Development 2005). On
request, the Dubai Municipality supplied Emirati employee numbers in target
organisations, and confirmed the organisations selected constituted best practice in
Emiratisation in Tanmia’s 2001 national survey.
5.4 Phase 1 and 2 Data Acquisition
Data collection was conducted in two phases. The objective of two-phase
exploratory design is to use the results of the first mixed method (qualitative and
qualitative) to develop or inform the second method (quantitative) (Greene et al.
1989). Phase one comprised email contact with key informants (20 senior Dubai
managers knowledgeable regarding Emirati employment), and phase two consisted of
a subsequent questionnaire distributed to all 1500 respondents. The purpose of the
exploratory phase was to identify the relevant data-gathering instruments for the
framework and the variables impacting Emirati employment. Cavana et al. (2001)
highlight that exploratory studies are undertaken to better understand the nature of the
research problem. Relevant to this case, explanatory design is particularly useful when
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a researcher needs to identify important variables to study quantitatively when the
variables are unknown (Creswell 1999; Creswell et al. 2004). Creswell and Clark
(2007, p. 78) state that exploratory design is easily applied to multiphase research
studies, and separate phases make this design straightforward to describe, implement
and report.
5.5 Phase 1 Key Informant Contributions
The purpose of this exploratory phase was to prove the relevant data-gathering
instruments and confirm the variables impacting Emirati employment (Cavana et al.
2001).
5.5.1 Participant Selection
Key informants were selected from the public sector, including Dubai
Municipality, Tanmia and Dubai Electricity; and the private sector including Dubai
Commercial Bank, and Dubai National Bank, Dubai Telecommunication and Dubai
Aluminium Company, thus allowing a range of data from various sources (see Section
5.3). A mixed method approach (qualitative and quantitative) allows key informants
an opportunity to include more information, including perceptions, attitudes and
understanding of the subject (see Section 5.3.1). In addition, it gives a place to express
an opinion without being influenced by the researcher and it also allows respondents
to give answers in their own way (Foddy 1993; Fink 1995). Lazarsfeld (1944)
suggested using open-ended and close-ended questions at the initial phase to identify
adequate answer categories for issues. Thus, the questionnaire for key informant
contributions used open-ended and close-ended questions (see Appendix 5).
5.5.2 Questionnaire Processes
The study, its authenticity and its intentions were explained in a letter of
invitation that accompanied the emailed survey to all key informants (see Appendix
2). Confidentiality and privacy of the information were assured. The questionnaire
was framed in both quantitative and qualitative analytical approaches (see Appendix
5). The questions were largely adopted from a series of previous reports by Tanmia
(2004) and used to validate the quantitative, closed-ended questions and for
comparison of extant research findings; and open-ended qualitative questions were
included to elicit emerging themes. Participants were asked 31 questions concerning
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barriers to Emirati employment. Responses for the closed-ended questions were
designed for a 5-point Likert scale, and the qualitative open-ended questions enabled
respondents to elaborate on the topic.
Upon return of the emailed questionnaires, that is, 17 responses from 20
distributions, the respondents were categorised by industry, the data prepared as files,
and SPSS 13.0 statistical analysis software was employed for frequency analysis, used
in this phase to examine three dimensions of the data. As this study’s aim is to
identify priorities for the issues or variables impacting Emiratisation, the analysis
focused on question responses of very important and important only, and those items
that showed other values were omitted.
First, the responses were categorised and compared with the number of
respondents, and an initial examination of frequencies undertaken for the opinion
items to identify themes from these responses. In addition, the factual data frequencies
were examined to determine the scale for each factor. Finally, an initial examination
of the opinion items assisted analysis.
5.6. Phase 1 Study Findings
The questionnaire comprised sections relating to employers: Emiratisation,
organisation culture, recruitment and retention, remuneration, career development; a
section on education levels of recruits, and a section on respondents’ data. Results of
the analyses for these categories are discussed in this section.
5.6.1 Emiratisation policies
Emiratisation policy questions comprised both quantitative and qualitative
approaches, inviting reasons for the respondents’ views. Thirteen respondents (76%)
reported affirmative policies for Emiratisation, including attractive remuneration and
financial incentives; targeted career paths and career development opportunities; a
working environment inclusive of the traditionalist approach, trust and empowerment.
Other respondents reported no specific Emiratisation policy, citing grounds for their
responses that Emiratisation was defined under legislation, the organisation did not
support Emiratisation, or that Emiratis disregarded work in the private sector,
therefore it was unnecessary.
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Questioned on options for government to strengthen Emiratisation, the following
responses were offered
• Establish an Emirati employment coordination centre for all matters from job-
seeking to career development that also provides technical and language
training, work experience, and addresses inequities in employment for women
• Launch strong Emiratisation awareness and job offer programs, promote
successful organisations, encourage cultural awareness in the workplace
• Increase Emirati quotas on target industries and job classifications, provide
financial support by government for in-house training programs for nationals
• Link new visa and labour permits for non-nationals to Emiratisation
compliance; increase taxes on the permits, monitor organisations’ compliance
to Emiratisation, impose financial penalties for non-compliance
• Government compensation to maintain Emiratis’ remuneration in the private
sector to the equivalent public sector rate or, alternatively, minimise the wage
gap between sectors; reduce public sector work for non-complying
organisations.
5.6.2 Deterrents to Emiratis Seeking Jobs
It is clearly the case that existing policies and practices do not achieve
Emiratisation. The research findings state that committed Emiratisation organisations
cannot maintain increasing quotas, either through the firm’s expansion or through
Emirati resignations. The participants’ views on the minimal numbers of UAE
nationals in the private sector are set out at Table 5.1 below.
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Table 5.1: Deterrents to Emiratis Seeking Jobs
Variables Responses Important Percentage
Very Important Percentage
Total* Percentage
No career prospects 53 47 100 Little opportunity for promotion and training 47 35 82 Unacceptable remuneration 24 58 82 Long hours of work 29 47 76 Non-nationals resistant to mentoring Emiratis 17 59 76 Split-shift work 41 29 70 UAE nationals experience discrimination 24 29 53 Working six days per week 35 18 53 Family resistance to employment 12 23 35 * Results combining ‘important’ and ‘very important’
Table 5.1 shows the importance exploratory survey participants placed on
factors discouraging young Emiratis applying for work. Primarily, it concerned career
prospects, caused by the temporary nature of jobs in UAE. Variables related to career
comprised the total view, and the majority view of the participants. Unacceptable
remuneration, lack of support from team members and long hours were also
considered highly relevant. However, there was a status principle in play as well.
Participant number 2 stated that
Many young nationals don’t look for a job; they are financially satisfied because they are living with their parents.
Other responses from the open-ended questions on barriers to employment
concerned human resource managers, who noted an absence of Emiratis employed in
their responsibility areas which impacted recruitment of nationals; and that expatriates
were perceived to be more productive, and thus cost-effective. Further, nationals are
unlikely to apply for low paid and low status jobs such as labourers, and such jobs are
freely available in UAE’s high development economy.
5.6.3 Qualification Standards
Nationals’ educational standards remain a concern for private sector employers,
who frequently require technical and mathematical disciplines in recruits’
qualifications (Tanmia 2004) to meet job specifications. Table 5.2 shows the
percentage of participants who believe Emiratis are appropriately qualified at that
level. Note that Emiratis are required to complete secondary school before they can
enter the job market (Tanmia 2004).
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Table 5.2: Meeting Qualification Levels for Job Specifications
Qualification Job Specification Requirements % Secondary school 94 Technical diploma 76 Higher diploma 71 Bachelor’s degree 65 Post graduate degree 47
Table 5.2 presents the percentage of participants that consider qualified Emiratis
actually meet the job specification qualifications. Overall, three-quarters (76%) of the
HRM respondents consider that Emiratis meet the specified qualifications levels. The
remaining quarter (24%) said that UAE nationals are not adequately prepared for the
workforce and need further training to develop their skills. Suggestions for addressing
these concerns included links between the private and public educational institutions,
industry leaders, and professional organisations to match curricula with current and
future workforce skills; and that curricula contain more real-life examples and
practical experiences.
5.6.4 Barriers to Employment
Respondents were queried on general attributes of national job applicants, and
those they considered a barrier to employment. Table 5.3 shows respondents’ views
on this theme.
Table 5.3 Personal Attribute Barriers to Emiratisation
Variable Response* Percentage: Deficiency in experience/training/skills 70 Low motivation 65 Low English fluency 65 Lack of interpersonal skills 59 Low trust 41
* Results combining ‘important’ and ‘very important’
The participants’ views in Table 5.3 are that Emirati job applicants are deficient
in work experience, job training and thus work skills; they are unmotivated to work,
and they are not fluent in English, nor do they exhibit interpersonal skills. These are
the major determinants of personal attribute barriers to workforce participation.
With some differences in emphasis to the literature (see Chapter 4), respondents
reported similar views: that young Emiratis find deficiencies in career development,
and remuneration; and employers note Emirati deficiencies in experience, training and
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qualifications, and motivation including expectations to the effort involved in
participation in the workforce.
5.6.5 Hiring Emiratis
Respondents, as employers, were asked for their evaluation of characteristics of
nationals. Table 5.4 shows the extent respondents’ decision is influenced when they
consider recruiting a national.
Table 5.4: Evaluation of Applicant Characteristics
Variables Responses* Percentage Qualifications/skills 94 Experience 65 References 12 Age 24 Gender 12
* Results combining ‘very important’ and ‘important’
Table 5.4 shows that of these variables, qualifications and skills factor was
regarded as the most important, with experience cited by 65 per cent of the
respondents. Of note, age was a factor in a quarter of the responses. Participants
reported that
Finding the right skills profile in Emiratis is extremely difficult. Their English needs attention and they are undisciplined and do not have appropriate work ethics (Participant 3). In Participant 6’s opinion, the availability of required skills and loyalty to their employer among UAE nationals is very low.
5.6.6 Retaining Emiratis
Once employed, research shows nationals have a high turnover rate. For
employers to meet quotas for Emiratisation not only do they need to attract nationals,
they must retain them. Respondents were questioned as to their views of important
elements to retain staff. Table 5.5 below gives their views.
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Table 5.5 Factors to Retain Emiratis in Employment
Variable Responses Important Percentage
Very Important Percentage
Total* Percentage
Government contributes to corporate costs to achieve Emiratisation
18 82 100
Regular reviews of remuneration 18 76 94 Establish an Emirati employment centre
29 65 94
Establish a lifelong learning centre for technical and language training
17 71 88
Impose penalties for corporations who do not reach Emiratisation quotas
35 53 88
Implement quotas for employment of UAE nationals
41 47 88
Encourage corporations to offer work experience to Emirati students
17 59 76
Observe cultural differences in workplace
41 29 70
* Results combining ‘important’ and ‘very important’
To retain Emiratis in employment, as shown in Table 5.5, respondents nominate
government financial contributions, establishing an employment coordination centre
and regular remuneration reviews as important considerations. Of interest is the heavy
emphasis placed on government assistance, especially with training, and salary
reviews. An indication of the difficulty in retaining nationals was expressed by
Participant 4:
UAE Nationals are under represented in the private sector, an environment which is not suitable for U.A.E. national women. Many women leave work when they find that their employers do not support their career aspirations.
5.6.7 On-the-job Training
Training is an issue for Emiratis, as they are under-prepared in working skills.
English fluency and some deficiencies in mathematical and technical skills require
rectification for Emirati participation in the work teams or task fulfilment. In this
study, 41 per cent of respondents reported that UAE nationals received training in the
past year, whilst 12 per cent reported workplace training for Emiratis up to five times
during the year and 35 per cent of participants reported regular training for their
Emirati employees, that is, more than five times per year. Further, 88 per cent of
respondents agreed that, given further opportunity for training and career
development, the participation rate of UAE nationals will increase.
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5.6.8 Working Conditions
Non-nationals are reported as being generally more satisfied in their work than
UAE nationals. This applies across a range of variables, with the exception of the
input to the decision making process. Table 5.6 illustrate these differences.
Table 5.6: Employee Satisfaction: Non-nationals and Emiratis
Working Condition UAE Nationals Non-nationals Satisfied %
Very satisfied %
Total* %
Satisfied %
Very satisfied %
Total* %
Annual leave entitlement 35 35 70 35 47 82 Sense of achievement 47 12 59 59 29 88 Contribute to decision making
47 12 59 23 36 59
Remuneration comparison with other organisations
47 6 53 41 35 76
Career plan 41 6 47 59 23 82 Satisfactory working hours 12 29 41 41 41 82 Opportunity for promotion 23 12 35 29 29 59 * Results combining ‘important’ and ‘very important’
Table 5.6 shows the greater variation in the respondents’ perceptions of the
attitudes of Emiratis and their co-workers to working hours, that is, split shifts and
six-day working week (41% approval for Emiratis and 82% approval for expatriates),
followed by career planning (47% approval for Emiratis, 82% others). Remaining
major differences lie with sense of achievement and promotional opportunities. UAE
nationals and non-nationals show broadly similar patterns of overtime worked.
The following tables refer to Table 5.6 by differentiating responses between the
public and private sector. There is nine per cent of employees who are Emiratis in the
public sector, and one per cent in the private sector. The first, Table 5.7 shows the
results for this sector.
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Table 5.7: Employee Satisfaction: Non-nationals and Emiratis – Public Sector
Working Condition
UAE Nationals Non-nationals Satisfied %
Very satisfied %
Total* %
Satisfied %
Very satisfied %
Total* %
Annual leave entitlement 43 43 86 29 57 86
Sense of achievement 57 0 57 86 14 100 Contribute to decision making
86 0 86 14 14 28
Remuneration comparison with other organisations
57 0 57 43 28 72
Career plan 71 0 71 72 14 86 Satisfactory working hours
14 29 43 57 43 100
Opportunity for promotion
43 14 57 43 28 71
* Results combining ‘important’ and ‘very important’
Table 5.7 illustrates greater differences between the public sector and the
combined satisfaction response at Table 5.6, with an atypical response from the
expatriates who are reported by the exploratory study participants as 28 per cent
approval for contributing to the decision making process, whilst Emiratis are reported
as 86 per cent in agreement with their contribution. ‘Satisfactory’ working hours
confirms that the non-nationals are reported as considering this variable entirely
satisfactory, whilst nationals are confirmed at less than half finding the hours
satisfactory. The second, Table 5.8 shows these results.
Table 5.8: Employee Satisfaction: Non-nationals and Emiratis – Public Sector
Working Condition
UAE Nationals Non-nationals Satisfied %
Very satisfied %
Total* %
Satisfied %
Very satisfied %
Total* %
Annual leave entitlement 33 17 50 67 33 100
Sense of achievement 66 17 83 50 50 100 Contribute to decision making
33 17 50 33 67 100
Remuneration comparison with other organisations
50 17 67 50 50 100
Career plan 16 17 33 50 50 100
Satisfactory working hours 16 17 33 50 17 67 Opportunity for promotion 16 17 33 33 50 83 * Results combining ‘important’ and ‘very important’
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Table 5.8 shows that HR respondents viewed expatriates as being completely
satisfied with a range of conditions in the private sector, whilst Emiratis were not
responsive to all but two variables, a sense of achievement and remuneration.
5.6.9 Cultural Issues
Emiratis constitute on average one person in ten in their workplaces. Despite the
number of nationalities involved with an expatriate workforce, it is expected that
nationals form a minority in most private sector workplaces. Participants’ views on
this diversity were that nationals were either satisfied (46%) or very satisfied (35 %)
with their co-workers.
Despite this exploratory finding, there are underlying social and cultural issues
that regularly lead to nationals’ resignation and this is particularly relevant for Emirati
women. Cultural issues were acknowledged by the HR participants, who responded to
the question of managing workplace issues. Less than half (47%) of respondents said
that they offered to solve issues that arose between UAE nationals and non-nationals.
The majority of respondents (78%) reported that non-national team members did not
mentor nationals, ignoring their task and teamwork efforts and this was a major issue
in the private sector for Emiratisation. As an example, an Emirati may report to a less
well-qualified manager and be perceived as a threat, as Participant 13 explains:
there are a number of UAE nationals who are well educated, have work experience and challenge their expatriate directors, but expatriates create some problems for them in order that they should leave the company, because the expatriates fear that one day the nationals will take their post.
Respondents also reported discrimination by expatriates for nationals;
nonacceptance and intimidation brought about by different world views, language
issues, and thus mistrust. Participants reported that non-nationals viewed
Emiratisation as a direct threat to their jobs.
Organisations dedicated to Emiratisation nevertheless had policies and practices
in place for conflict resolution. HRM’s role reported in the study in team and
supervisory issues included applying standing HR practices such as emphasising the
importance of both individuals and their roles in the organisation, appealing for
mutual understanding; and if these measures failed, transferring an Emirati to the
same job in a different section. Participant 1 elaborated:
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Each expatriate and UAE national should work together as a pair, both responsible for the outcome, and there is a replacement if one of them is on vacation, which will strengthen the UAE national’s ability to handle the job as an individual and widen his or her work experience and skills.
5.7 Phase 1 Results Discussion
This study investigates the obstacles facing Emiratisation. Analysis of the
literature, available documentation and an explanatory study questionnaire reveals
that UAE nationals encounter barriers to labour force entry including inadequate
standards in their qualifications, experience and skills. The respondents reported
Emiratis had irregular training on the job, and indifferent HR policies including
remuneration to maintain their interest and dedication to the job, and an unwelcoming
corporate culture, which brought up gender issues and nepotism. They faced limited
career development opportunities, and were deficient in English fluency. These
exploratory findings are consistent with other studies (see Chapter 4) that report that
Emiratis have a strong negative attitude towards work in the private sector.
The results from Table 5.3 clearly show that private sector employers are not
ready to employ UAE nationals who are deficient in specified experience and skills.
Emiratis reciprocate: they prefer not to enter the private sector (Yang and Samiha
2001, Freek 2004). Other factors that operate against greater Emiratisation are job
seekers’ perceptions of low career prospects, long hours of work, and that preferential
working conditions of the public sector are not countenanced elsewhere. Further,
there is little transfer of experience and training from expatriates to nationals, as
Emiratisation aimed to achieve. Respondents’ views are that either the expatriates do
not want a mentoring role towards nationals, or that nationals do not receive sufficient
on-the-job training to fulfil the duties of the job. These findings illustrate private
corporations that have aligned their operations to a transient workforce, with
remuneration and conditions directed toward short-term contracts. Thus, there is no
job continuity, no career structure and no management skills required. Each does his
or her own job and contributes to the corporation’s profitability. Mentoring,
permanency and career development of Emiratis are not on expatriates’ job
specifications. This anti-Emiratisation environment is being slowly addressed by
social capital strategies of the government and industry leaders.
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Emiratis are conscious of their burden to gain hegemony over their economy.
Respondents from the public sector reported that Emirati employees are influenced by
annual leave entitlements, input into the decision-making process, and strategies for
achieving their career goals. Research points to other beneficial conditions in the
public sector: life long employment, further educational opportunities, higher
benefits, lower and more amenable working hours, and retirement benefits, all of
which create a strong preference of UAE nationals for the public sector (Abdelkarim
2001b; Freek 2004).
The important factor impacting Emiratisation in the views of the respondents
(94%) are applicants’ qualifications, knowledge and skills. To support this view,
Krueger and Lindahl (1999) find that better-educated people are more likely to be in
work and are then less likely to suffer unemployment. Therefore, it is clear that UAE
nationals who are less educated (secondary school and trade diploma) have less
opportunity to find, in their view, an ‘appropriate job’ compared to those who attain
higher education qualifications, such as bachelor’s and master’s degrees. The second
important factor that determines whether or not a national is hired is experience.
Without adequate preparation the outlook for Emiratis’ future career prospects, as
observed in the banking and insurance fields, are slim. The overriding policy for
Emiratisation therefore is training and work experience from the education system.
Preparation is paramount in retrieving Emiratisation principles.
As Participant 12 summed up the situation, it is management’s role
…to encourage expatriate employees to train and pass their knowledge to UAE nationals in the workforce and increase UAE participation. We should gain their trust in order to pass on the ideas and information. We should enhance communications skills between nationals and non-nationals and encourage non-nationals to assist nationals at their jobs. We should make them aware that this is for the benefit of the organisation, not for personal gain; however we should offer rewards or promotion for the employees who will to teach locals and pass on their skills.
5.8 Conclusion
Workplaces in the UAE evolved to attract a constant flow of transient
expatriates, from labourers to chief executive officers. There is constant expansion to
maintain momentum of the economy, issues relate to funds flows, resource logistics,
and corporate visions, objectives and organisational systems dictated by international
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competition. Thus, UAE is experiencing the social and economic isolation of its
nationals through their inability to access suitable work in the private sector. The
public sector, for decades an automatic life employer, no longer indiscriminatingly
accepts Emiratis into its overfilled ranks. Further, government policy, based on social
capital principles, is to address the continual influx of qualified and experienced
expatriates who may remain for three years and relatively easily continue their
employment until they reach the age of 60 years, when they must leave the UAE. This
ongoing situation has led to workplaces adopting conditions which suit the
expatriates, and with one per cent or less of nationals, the matter of Emiratisation is
low on their list of priorities. The government’s policies are adapting to encourage a
greater sense of permanence for the financial workplaces, notably banking and
insurance, but success is elusive. Emiratis, faced with workplaces offering financial
reward for performance and attitude, and otherwise basic conditions aligned to
business clients and not employees, are understandably demoralised and confused.
They are a small minority struggling to reach standards in a generation that Western
economies have been developing for centuries. Greater attention must be directed to
their plight.
The next chapter presents the findings of the main survey, the questionnaire
refined through rich data retrieved from this, the exploratory survey findings. Chapter
7 sets out demographic information of respondents, the characteristics of factor
analysis and data reduction to select variables to articulate Emiratisation issues and
their resolution.
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Chapter 6
Study Methodology and Phase 2 Survey
The antecedents of the main research work in this study were described in the
previous chapter: literature review; research objective and hypothesis development;
contributions of the key informants, and analysis of these responses. Phase 1
responses determined that private sector employers did not consider that Emiratis
seeking work were competent in a range of job descriptions, which they were
attempting to access. The Phase 1 participants, as HR management, reported that UAE
national job seekers’ perceptions were of low career prospects, long hours of work,
and that public sector working conditions were not available in the private market.
Emiratisation aims also failed in skills transfer and mentoring.
These are the themes for the main Phase 2 survey instrument, discussed in this
chapter. This presentation shows the data collection method employed, including a
pilot to prove the instrument content, ethical measures, verification strategies,
implemented standards; and the research instrument is fully explored. Finally, the
procedures are provided for the analysis of data, and the various statistical
applications.
6.1 Survey Instrument The survey is the most widely used data-gathering technique in the social
sciences. A questionnaire format can be adapted for use through various distribution
media; it can be administered by telephone interview (Neuman 2006), face-to-face
interview (Babbie 2007), internet (Babbie 2007; Neuman 2006) or printed self-
administered questionnaires (Neuman 2006). The self-administered questionnaire was
selected for this study for the following reasons
• Facilitates administration and is cost-effective.
• Offers anonymity and avoids interviewer bias.
• Measures many variables, tests multiple hypotheses, and infers temporal
order from questions about past experience, behaviour, value or
characteristics (Neuman 2006).
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• Investigates perceptions of large numbers of participants, allowing time and
opportunity for full consideration of the issues and the collection of pertinent
data (Maxim 1999)
• Many respondents have no or limited assess to internet
• Previous UAE employment studies were smaller and used qualitative
approaches; thus a self-administered questionnaire to a large number of
respondents can obtain findings that can be generalised and used for future
research.
6.1.1 Questionnaire Design
A questionnaire is a communication medium for data collection, consisting of set
of written questions for the respondents to answer (Baumgartner et al. 2005). There is
wide agreement that questionnaire design will affect the response rate and the
reliability and validity for the data collected and Saunders, Lewis and Thornhill
(1997, p.244), and Hussey and Hussey (1997, p.162) for example, use the following
criteria to maximise these factors
• Careful design and wording of individual questions
• Careful design of the questionnaire form
• Lucid explanation of the purpose of the questionnaire, both in the
questionnaire and in the accompanying letter
• Testing.
To minimise biases in research, this study employed the design criteria of
Cavana et al. (2001) to obtain maximum reliability and validity: general appearance of
the questionnaire, wording of questions, and means by which variables are scaled,
categorised and coded after receiving the responses.
6.1.2 Questions
Following the principles of Cavana et al. (2001) in wording questions, attention
was given to the appropriateness of the content of the questions, language style and
words used, type and form of questions, sequencing of questions and demographic
information. These points are discussed under.
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Appropriateness: The nature of this study required subjective and objective
responses thus questions were framed in both the first phase survey and the second
phase questionnaire to record subjective matters such as satisfaction, involvement and
attitudes toward work; and objective variables: age, education, experience and
occupation. The purpose of each question was carefully considered so that the
variables would be relevant adequately measured, and not extraneous. Finally, the
questionnaire was designed to be understandable by all respondents in both public
and private sectors.
Language Style: Whilst Cavana et al. (2001), in commenting on language and
wording, were referring to formality of language, and the reader’s ability to
understand its meaning; the term is apt in this instance for bilingual communications.
However, in the key informant phase individuals were fluent in English with the
majority having 10 years’ experience or more, which facilitated their understanding of
the phase one instrument.
Simple English is necessary to convey meaning in a country where it may be the
lingua franca, but not the official language. Thus, the second phase questionnaire was
couched in English words where an Arabic translation was feasible, and definitions
provided in many instances. The choice of words depended on the UAE nationals’
educational level, the usage of terms and idioms in the culture, and the frame of
reference of the respondent.
For phase two, the questionnaire was developed in English by the researcher,
translated into Arabic by a bilingual expert to minimise discrepancies. A second
person then translated the Arabic version back into English, so that misconceptions
were identified and resolved after discussion with the translators.
In translating the scale items into Arabic, the researcher followed the technique
of Malinowski (1935), cited in Mostafa (2004): interlinear, or word-by-word,
translation; ‘free’ translation in which clarifying terms and conjunction are added and
the words reinterpreted; analysis and collation of the two translations; leading to a
contextual specification of meaning.
Type and Form of Words: Citing Cavana et al. (2001), the type of question
refers to whether it is open-ended or closed-ended. The form of words refers to
positively and negatively worded questions. As stated earlier, the phase one type of
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questions was open-ended and close-ended to give the key informant both a structured
and unstructured approach to issues of Emirati employment. In phase two the
researcher used a close-ended questionnaire to facilitate a respondent’s quick response
and return of the questionnaire; it also assisted in coding for subsequent analysis.
Negatively word questions were included (item nos. 13, 17, 54 and 6 (part 2) to detect
lack of attention, and thus minimise bias (Cavana et al. 2001, Neuman 2006).
Sequencing of Questions: Ordering questions is important because the sequence
of questions can influence study results (Krosnick & Schuman 1998); thus this
question ordering leads the respondent from those of a general nature to the specific.
The gender questions, considered the most sensitive questions, were placed at the end
of the survey because they then not only increased the number of candid responses,
but could also yield more data (Mitchell & Jolley 2004). Due to UAE’s culture, this
researcher was aware that respondents might quit the survey immediately if first
confronted with sensitive items. In addition, the questionnaires started with general
items relatively easy to answer, leading progressively to those requiring greater
consideration.
Within the subject groups, questions were randomly placed to reduce possible
systematic bias in the responses, and to enhance apparent differences in the questions
(Cavana et al. 2001). With exceptions, words were minimised; each statement in the
questionnaire was under 20 words or one full line of print as Mitchell and Jolley
(2004) recommended. Two questions only required further explanation and were
longer than 20 words (Questions 7 and 12 part 2, see Appendix 6).
Demographic Information: Conforming to survey practice, this study placed the
demographic questions last, although debate continues about positioning of such
questions at the beginning of a questionnaire. The recommendation is that familiarity
of the content allows a respondent time and confidence to be more open to answer
personal questions (Cavana et al. 2001; Mitchell & Jolley 2004). This point is well
made for this study, as this researcher considers that UAE cultural reticence is
confronted by early requests for personal information such as details of income or
education, highly sensitive issues for UAE nationals. The demographic questions
were indeed placed at the end.
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6.1.3 Measurement Principles
The principles of measurement refer to the scales and scaling technique used in
measuring concepts, as well as the assessment of reliability and validity of the
measure used. According to Cavana et al. (2001) there are ten rating scales frequently
used in business research. Common elements of the preceding attitudinal scales are as
follows
• Dichotomous scale is used to elicit a yes or no answer
• Category scale is used with multiple items to elicit a single response
• Semantic differential scale is used to evaluate respondents’ attitudes towards
the subject matter
• Numerical scale is similar to the semantic differential scale, with the
difference that numbers on a five-point or seven–point scale are provided
with bipolar adjectives at either end
• Likert scale examines the strength of subjects’ agreement or disagreement
with a statement on a five-point scale.
In this study the Likert scale was selected as first, it yields interval data, hence
responses to Likert-type items can be analysed with more influential statistical tests
than nominal-dichotomous items (Mitchell & Jolley 2004). In addition, it gives
respondents the freedom to strongly agree, agree, be neutral, disagree and strongly
disagree and thus facilitates questionnaire completion. The Likert scale can increase
the comparability of responses given to different questions for the respondent as well
as for the researcher (Babbie 2007).
To maximise the quality of the research findings and conclusions a number of
factors: measurement, reliability and validity of the research findings; were taken into
consideration in the research design. These factors are discussed below.
6.1.4 Measurement of Items
In this study, the item pool of 75 items was developed by reference to existing
questionnaires; literature reviews and the experience of this researcher (see Table 6.1
below).
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First, items based on the literature are examined to ensure they meet the purpose
of this study. The questionnaire measures three capitals, namely, human,
organisational and social capitals. In the following Table 6.1 Pretested Scale Items,
Sources and Cronbach’s Alpha, these elements are placed in perspective.
Table 6.1: Pretested Scale Items, Sources and Cronbach’s Alpha
Construct Items Sources Cronbach alpha
Human capital domains, Section 1 (18 items) Education Q3. My education has provided me with adequate skills for joining the workforce. New item see Section 7.2.2
Q3 in part 3. Education level New item see Section 7.2.2
Experience and skills Q1. My experience and skills were important for joining the workforce New item see Section 7.2.2 Q31. My organisation values skills and experience when recruiting and promoting employees New item see Section 7.2.2 Q51.UAE nationals have sufficient experience and skills to do their jobs well New item see Section 7.2.2
Training and development Q33. My organisation has provided me with training opportunities enabling me to extend my
range of skills and abilities
Greenhaus & Wormley
(1990)
.93
Q36. My organisation supports my attempts to acquire additional training or education to
develop my career
Greenhaus & Wormley
(1990)
.93
Q38. My organisation is committed to the training and development of its employees Edgar & Geare (2005) Ranged between
0.83 - 0.88
Q53. UAE nationals need more technical New item See Section 7.2.2
Organisational
engagement
Q8. I would be very happy to spend the rest of my career with this organisation Sagie et al (2002)
0.89
Q12. I am an important part of this organisation Milliman et al. (2003) 0.83 - 0.93
Q13. Frequently, I think of quitting my job (reversed) Milliman et al. (2003) 0.83 - 0.93
Q17. I do not feel emotionally attached to this organisation (reversed) Weiss & Dawis (1967) 0.89
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Q34. My organisation does what it can to ensure the well being of its employees Edgar & Geare (2005) 0.83-0.88
Q41. I believe employees really care about each other in this organisation Milliman et al. (2003) 0.83 - 0.93
Q42. There is a sense of being a part of a family in this organisation Milliman et al. (2003) 0.83 - 0.93
Q45. This organisation has a poor future unless it attracts better managers (reversed) Cook and Wall (1980) 0.78
Q49. My organisation supports employees with the balancing of work and family
responsibilities
Edgar & Geare (2005)
0.83-0.88
Organisational capital domains, Section 2 (29 items)
English fluency Q2. The importance of English language in my job cannot be underestimated New items See Section 7.2.3
Q5. English is the biggest problem preventing me from participating effectively from gaining
promotion in my organisation
Q24. English is the biggest problem preventing me from being competitive among non-
nationals in my organisation
Q29. My organisation expects me to be fluent in English language
Organisational culture Q9. My job gives me enough time for family and social activities Firth (2004) 0.91
Q21. My work in this organisation is interesting and challenging Carmeli (2005) 0.86
Q32. Overall, management in my organisation is supportive of cultural differences Carmeli (2005)
0.72
Q37. My organisation provides tasks that give me the opportunity to develop and strengthen
new skills
Greenhaus et al.(1990) 0.93
Q39. People in my organisation are encouraged to make suggestions for improvement in our
work
Carmeli (2005)
0.79
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Q40. There is opportunity to discuss my training and development requirements with my
organisation
Edgar & Gear (2005) 0.83 -0.88
Q43. My manager constantly updates me with relevant organisation information Sagie et al. (2002) 0.86
Q44. My organisation cares about whether or not I achieve my career goals. Greenhaus et al. (1990) 0.93
Q46. Management here does a good job of communication with employees Carmeli (2005) 0.72
Q47. In my organisation, conflicts are resolved to the satisfaction of those concerned Carmeli (2005) 0.72
Q48. Employees in my work unit are like a family Carmeli (2005) 0.69
Career development Q6. I am satisfied with the way promotions are given out in this organisation Greenhaus et at (1990) 0.88
Q10. My job requires me to do many different tasks at work, using a variety of skills and talents. Carmeli (2005) 0.86
Q15. Overall, I am satisfied with the success I have achieved in my career Greenhaus et at (1990) 0.88
Q23. Overall, I am satisfied with the progress I have made toward meeting my goals for developing
new skill Greenhaus et at (1990) 0.88
Q28. I am satisfied with the chances for advancement in my job 0.88
Working condition Q4. I have good physical working conditions (total time, shift, good ventilation and lighting,
adequate work space) in this organisation
Minnesota in Vocational
Rehabilitation (1967)
0.83 -0.88
Q7. My health has not suffered as a result of working for this organisation Minnesota in Vocational
Rehabilitation (1967)
0.83 -0.88
HR Policies Q14. I am satisfied with organisation policies and practices toward employees Weiss & Dawis (1967) 0.93
Q16. I feel satisfied with the way in which the organisation’s policies are applied Weiss & Dawis (1967) 0.93
Q22. I am satisfied with the way employees are informed about organisation policies Weiss & Dawis (1967) 0.93
Q25. I am satisfied with the way these policies are administered by this organisation Weiss & Dawis (1967) 0.93
Remuneration Q11. I am satisfied with this organisation’s salary structure Heneman (1985) 0.80
Q20. I am satisfied with the similarity of salary paid among departments in this organisation Heneman (1985) 0.80
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Q26. I am satisfied with my current salary Heneman (1985) 0.80
Social capital domains, Section 3 (21 items)
Gender inequality
Q1.Women lack the skills and ability for management positions in this organisation Sidani and Gardner
(2000)
0.83-0.88
Q2. Women are not competitive enough to be successful in this organisation Sidani and Gardner
(2000)
0.83
Q3. To achieve a high position in this organisation, a woman has to sacrifice some of her
femininity
Sidani and Gardner
(2000)
0.83
Q4. My organisation’s policies and practices hinder women’s career development New items see Section 7.2.4
Q5. Training opportunities and career progression are limited and very slow for women in this
organisation
New items see Section 7.2.4
Q6. Men and women have the same employment opportunities in this organisation (reversed) Edgar and Geare (2005)
0.88
Q7. Traditional Arab/Islamic societies maintain that first and foremost, women should have a
domestic career of being a wife and mother.
New items see Section 7.2.4
Q8. The possibility of pregnancy makes employers reluctant to hire women in management
positions
Sidani and Gardner
(2000)
0.83-0.88
Q9. The lack of a professional women’s network creates a major void for women aspiring to a
professional managerial position
New items see Section 7.2.4
Q10. On average, a woman who stays at home with her children is a better mother than a
woman who works outside the home.
Sidani and Gardner
(2000)
0.83-0.88
Q11. Cultural differences in the perception of authority in UAE are an important factor
explaining women’s exclusion from leadership
New items see Section 7.2.4
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Q12. Employers in my organisation feel that employing females is a short-term investment
because females are known to leave after short periods of employment for family reasons
New items see Section 7.2.4
Trust Q18. I trust management to look after my career interests Cook and Wall (1980) 0.90
Q19. In general, I trust this organisation to keep its promises or commitments to me and other
employees.
Cook and Wall (1980) 0.90
Q27. I trust people I work with to lend me a hand if I need it. Cook and Wall (1980) 0.90
Q.35 People in this organisation can say what they want without fear of punishment Carmeli (2005) 0.72
Wasta (Nepotism) Q30. Favouritism in my organisation is not evident in recruitment decisions Edgar & Geare (2005) 0.83-0.88
Q50. In order to get a really good job, friends or family members in high positions are needed Whiteoak et al. (2006) 0.71
Q52. When it comes to finding a really good job, who you know is more important than what
you know.
Spector (1988) 0.91-0.94
Q54. Wasta is important in personal life Dobie et al. (2001) 0.91-0.94
Q55. Overall, organisations which allow wasta are less effective than organisations that
prohibit it
Haajenh et al. (1994) 0.80
6.1.5 Construct of Variables
Dependent Variables: The dependent or outcome variable is influenced or
predicted by one or more independent variables. According to Hair et al. (2006, p.
171) a dependent variable is that ‘variable being predicted or explained by the set of
independent variables’. Two dependent variables were selected, where both represent
human capitals, namely, organisational engagement, and training and development.
Twelve items measure these two dependent variables, using a five point Likert scale.
For dependent variable 1 (organisational engagement), there were 9 questions (item
nos.8, 12, 13, 17, 34, 41, 42, 45 and 49); and for dependent variable 2 (training and
development), there were 4 questions, (item nos.3, 36, 38 and 53).
Independent Variables: In qualitative research, the central interest is the
relationship between variables rather than in just describing the variable (Keith 2005).
Generally, the common conceptual framework for quantitative research is to seek
causal relationships among variables, where one is the ‘cause’ and the other is the
‘effect’. The independent variable is ‘presumed cause of any change in the dependent
variable’ (Hair et al. 2006, p.2). Nine independent variables were selected for this
investigation under three constructs (human, organisational and social capitals). The
objective is to identify the impact of these nine variables on Emiratisation and
national employees’ attitudes to work. The nine variables are, in order:
Human capital: two variables and five items as follows:
• Education, with two questions, item nos.3 and item 3 in part 3.
• Experience and skills, with three questions, items nos. 1, 31 and 51.
Organisational capital: six variables and 29 items as follows:
• English fluency with 3 questions, item nos. 2, 5 and 24.
• Organisational culture with 11 questions, item nos.
9,21,32,37,39,40,43,44,46,47 and 48.
• Career development with 5 questions, item nos. 6,10,15,23 and 28.
• Working condition with 2 questions, item nos.4 and 7.
• HR policies with 4 questions, item nos. 14, 16, 22 and 25.
• Remuneration with 3 questions, item nos. 11, 20 and 26.
Social capital: three variables and 21 items as follows:
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• Gender inequality with 12 questions, item nos. 1,2,3,4,5,6,7,8,9,10,11, and
12 in part 2.
• Trust with 4 questions, item nos. 18, 19, 27 and 35.
• Wasta or nepotism with 5 questions, item nos. 30,50,52,54 and 55.
Control Variables: In addition to the information relating to human,
organisational and social capitals, the study also collected information relating to
other factors that are often considered to have an impact on the variables under
investigation, so that the analysis can control for such extraneous factors. The control
variables include four demographic sets of variables, gender, age, educational level
and job title of employees
• Background information: there are 8 questions, (item nos. 1, 2, 3, 4, 5, 6, 7
and 8 in part 3).
6.1.6 Statistical Proof Applications
The following statistical instruments were selected to fulfil the requirements for
this quantitative research study.
Reliability and Validity: The reliability and validity are fundamental issues in
social research and are subjects of extensive concern in any research project.
Reliability is defined as ‘the quality of measurement method that suggests that the
same data would have been collected each time in repeated observations of the same
phenomenon’ (Babbie 2007, p.143). According to Salkind (2008), the assessment
tools used to test the hypothesis must be reliable and valid; otherwise the researcher
may act incorrectly in supporting or rejecting the research hypothesis. There are
several techniques for cross-checking the reliability of measures: test-retest method,
split-half method and using established measures (Neuman 2006). The established
measures technique was employed in this case, due to the use of proven measures
from previous research; thus the questionnaire was largely developed from previous
studies (see Table 6.1).
Cronbach’s alpha: This study tested for reliability of the measures through
Cronbach’s alpha, selected as an adequate test for reliability, as alpha will generally
increase when the correlation between the items increases. Sekaran (1992, p 174)
states that ‘in almost all cases, Cronbach’s alpha can be considered a perfectly
adequate index of the inter-item consistency reliability’. Cronbach’s alpha can hold a
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value between zero and 1, A reliability of less than 0.6 on the scale is considered poor,
0.7 is acceptable, and over 0.8 is superior (Cavana et al. 2001; Kline 1999; Malhotra
1993). However, Cortina (1993) argued against generalisations of acceptable levels,
due to the number of items on the Cronbach’s alpha scale. In this case, however, an
alpha of 0.7 or greater was considered adequate to ensure reliability. The alpha for all
scale variables in this study exceeds the critical value of 0.6 (Malhotra 1993); and
with the exception of social justice, with alpha of 0.66, all exceeded 0.7 (see Table
8.1). Overall, a strong reliability is demonstrated with coefficient alpha ranging from
0.66 to 0.90 (see Table 8.1).
Validity of measurement, the ‘extent to which an empirical measure adequately
reflects the real meaning of the concept under consideration’ (Babbie 2007, p. 146) is
tested as face validity, content validity, criterion-related validity and construct validity
(Cavana et al. 2001). Face validity and content validity were selected through its
feasibility and usage, ensuring that the questionnaire design collects the required
information to answer the research question (Babbie 2007). Face validity and content
validity are established through review of extant literature for the UAE, GCC
countries and international studies to identify the most appropriate items to be
included in the scales used. The researcher tested face validity by giving the
questionnaire to 50 Emirati students in Melbourne, of similar mien to those for the
sample for phase two in Dubai. The researcher was attempted to achieve content
validity through three ways, namely, from the literature, from qualitative research and
from the judgement of a panel of experts. Expert opinions were sought from other
researchers with an interest in the same field as this study. Furthermore, the researcher
identified specific points that describe the concept from the relevant literature. To
ensure that these specific points are representative of the concepts, a full list of the
points is referred to a panel of experts at UAE University. With opinions and feedback
from prior studies, the research experts, and the pilot test, the questionnaire
measurements were modified (see Section 6.2). This researcher achieved a reasonable
degree of confidence in the content validity after the modifications.
6.1.7 Questionnaire Presentation
The overall appearance of the questionnaire is as important as issues of wording
and measurement in questionnaire design. An attractive questionnaire with an
appropriate introduction and instructions facilitates completion and return, and these
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design elements were given careful attention. The final version of the Phase 2
questionnaire was divided into four sections. The first section comprised an
introduction that clearly identified the author and the purpose of the questionnaire, an
assurance of confidentiality, and appreciation for the respondent’s time (Appendix 6).
Sections two and three consisted of 67 questions designed to elicit opinions of UAE
national employees regarding their jobs, attitudes, commitment to their organisations,
organisational cultures and gender issues. There were 13 constructs and each
theoretical scale used between four and five items; this methodology was selected
corresponding to findings in the literature. First, Delahaye (2000) prefers a minimum
of three items for a theoretical scale, thus reliability of the summated score scale was
enhanced by the inclusion of further items (Spector 1992). The questions in each
section were prefaced by explanatory instructions and they were presented
attractively. Section four contained demographic information such as gender, age,
status, education, occupation and income. The questionnaire ended on a courteous
note and provided space for any additional comments; finally a reminder to
respondents ensures full completion of the questionnaire.
6.2 Pilot of Draft Questionnaire
A pilot of the Phase 2 draft questionnaire was conducted to identify issues
regarding design and instrumentation, and provide proxy data for selection of a
probability sample. Moser and Kalton (1958) state that a ‘pilot survey’ usually results
in significant improvements to the questionnaire and increases the efficiency of the
inquiry; with numbers in the group ranging from 25 to 100 subjects (Cooper &
Schindler 1998). Objectives of such a test, according to Baumgartner & Strong (1998,
p. 138), are
• Determine whether the questions provide appropriate data, or if further
questions are necessary
• Ensure that the respondents understand the context of questions
• Rectify any ambiguity and to reduce bias
• Determine the reliability and the validity of the questionnaire.
For the purposes of this study, a pilot study plus two reviews were conducted
during the process of developing the questionnaire. The pilot was conducted face-to
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face with 50 UAE national students in different fields at Melbourne, RMIT, Monash,
and Victoria Universities. The two reviews concerned four academics at UAE
University, and two academics at Melbourne and Griffith Universities.
The draft questionnaire was written for a Likert scale, tested on a similar group
to the final sample population by face-to-face interview (Saunders, Lewis & Thornhill
1997). Fifty copies of the questionnaire were distributed to Emirati students in
Melbourne, who cooperated very well with all questionnaires returned, a response rate
of 100 per cent. Further, twenty-five (50%) pilot respondents were employed in UAE
industries such as telecommunication and hospitality. The group included six doctoral
candidates studying in Victoria, Melbourne and Monash Universities. The participants
were asked to comment on the questionnaire in terms of clarity and design. Evaluation
was based on suggestions made by Pole and Lampard (2002, pp.135-136), recorded
under.
• Are the questions asked clearly specified and unambiguous?
• Are questions asked in a linear and incremental manner so that questions
follow a logical order?
• Do the questions asked provide latitude for a range of different views?
• Were any questions inappropriate from a cultural perspective? (In some
instances, certain questions required reformulation).
• How much time is required to answer all questions?
The findings and the relevant modifications to the questionnaire are
summarised below.
• Confusing words were changed. For instance, in the item ‘I believe
employees genuinely care about each other’, the word ‘genuinely’,
confusing for some participants, was changed to ‘really’.
• There were complaints regarding the length of the questionnaire. The
matter was put to all the pilot respondents and forty-five agreed that the
length of the questions was satisfactory and five complained about the
length of the questionnaire. Therefore, the final questionnaire’s length
remained based on the agreement of the majority.
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• Gender inequity questions were challenged. Suggestions included further
questions specific to UAE culture, to identify specific barriers to Emirati
women. The final questionnaire was thus modified by the addition of three
questions on this topic.
• Other questions were modified slightly on advice from the pilot
respondents.
The draft questionnaire was emailed for review to four academics at the UAE
University with a cover letter explaining the nature and objective of the research and
the procedures taken to ensure confidentiality. The reviewers were selected through
previous acquaintance with the researcher, and two responded. The comments on the
piloted questionnaire were satisfactory, given minor changes made to the structure of
the questionnaire and to the accompanying letter.
This draft questionnaire was then emailed to two Australian academics in the
University of Melbourne and Griffith University, selected through prior acquaintance
with this researcher. Their reviews were satisfactory, with four minor word changes.
The final Phase 2 questionnaire is shown at Appendix 6.
6.3 Phase 2 Survey Characteristics
Following extensive development and validation, the questionnaire was printed
for distribution. The procedure undertaken for distribution and collection is detailed in
this section.
6.3.1 Selected Organisations
The sample size for the Phase 2 survey was a possible 1500 participants, divided
into seven organisations, two from the public sector and five from the private sector,
with each organisation receiving 200 copies of the questionnaire, with the exception
of Dubai Municipality, which distributed 300 copies due to their higher number of
UAE national employees, noting that this researcher is employed by the Municipality.
The ten organisations selected were contacted by email, explaining the purpose of the
study and requesting support. Seven organisations responded, and supplied contacts to
help in the distribution and collection of the printed questionnaires; thus a sample of
1500 UAE national employees were selected as follows:
• Dubai Telecommunication, 200.
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• Emirates Bank Group, 200
• Commercial Bank of Dubai, 200
• National Bank of Dubai, 200
• Dubai Aluminium Co, 200
• Dubai Municipality, 300 (public sector)
• Department of Health and Medical Services, 200 (public sector)
To achieve a valid base for analysis, national employees of both sexes, varying
occupations and positions, and from a range of centres in their organisations
comprised the sample (Mintzberg 1989). A letter explaining the purpose of the study
was included in the email with each questionnaire and contained contact details for
the organisation’s representative, and this researcher, to encourage participation
(Appendix 3). An Arabic translation of the English-language letter and questionnaire
was included, given that the public sector employees preferred an Arabic
questionnaire, while those working in the private sector were mixed in their language
preferences. Finally, any additional comments regarding issues of concern not covered
in the questionnaire were accounted for in the form of a closed-ended question
(Appendix 6).
6.3.2 Distribution and Collection
Questionnaires are an efficient data collection mechanism when the researcher is
exact with the study’s requirements and the means to measure the variables of
interest. This study’s questionnaire was delivered as printed material, as although the
majority of respondents had computers, they did not all have access to the Internet or
email. The questionnaire, directed only to those organisations that evinced high
cooperation to the study, was hand delivered by this researcher to the nominated
representative of each of the seven organisations who were requested to collect the
questionnaire from their employees within two weeks of the distribution. This
technique was used because collecting data by self-administered questionnaire in the
Arab culture is difficult unless it is an internal instrument (Mostafa 2004). This
researcher followed through the distribution where possible to explain the purpose of
the questionnaire and maximise the response rate and the accuracy of the responses.
Moreover, this provided clarification sought by the respondents and enabled
145
immediate collection of the questionnaires. Cavana et al. (2001) found that the rate of
respondents increased when the researcher was involved during the distribution of the
questionnaire.
Data were therefore collected from a representative sample of the population
with 62 per cent (see Section 7.1) for analysis and to test the research hypotheses, or
answer the research questions. The next section will explore the steps taken in data
analysis.
6.4 Data Analysis
Before analysing the data and testing hypotheses, several steps are required
(Cavana et al. 2001). These steps as shown in Figure 6.2 below are preparation of
data, statistical analysis, accuracy of data and testing the hypotheses. These four steps
help to organise the data for analysis, ensuring that the data achieved are reasonably
good accurate (Cavana et al. 2001).
Source: Cavana et al. (2001)
D A T A C O L L E C T I O N Preparation
Editing data Managing blank responses Coding data Categorising data Entering data
Statistics Accuracy Hypotheses testing
Frequency distribution. Mean Standard deviation Correlations
Reliability Validity
Appropriate Statistical test
Data analysis
Interpretation of results
Discussion
Testing hypotheses
Figure 6.2: Quantitative Data Analysis Process
6.4.1 Preparation of Data
The four steps at Figure 6.2 assist in organising the data for analysis, ensuring
that the data achieved are reasonably accurate and reliable. The steps are discussed
below.
Editing: After receipt of the completed questionnaires from the participating
organisations (930 surveys or 62 per cent), the instruments were edited to ensure
146
completeness, consistency and reliability of data, as inconsistencies that can be
logically corrected should be rectified at this stage. Thus adjustments were made to
make the data more complete, readable and consistent before coding. Due note was
taken that if a substantial number of questions, 25 per cent of a questionnaire, were
left unanswered, then the researcher should not include it in the data set for analysis
(Cavana et al. 2001).
Blank Responses: In many instances respondents do not answer every item in
the questionnaire. This situation is addressed by Cavana el at. (2001) by varying
means described below:
• Merely ignoring the non-response during analysis
• Using an interval-scale item with a midpoint in the scale to assign the
midpoint as the response to the particular item
• Allocate the missing response a random number within the scale range
• Allocate the item the mean of the responses of this particular respondent to
all other questions measuring this variable
• Assign to the item the mean value of the responses of those who have
responded to that particular item.
The means selected for this analysis was to construct the index using different
methods to test the outcomes in relation to using each of the indexes. (Cavana et al.
2001; Babbie 2007).
Coding and entering data: To avoid errors and omissions in the transfer of data
from the questionnaires, a coding sheet was used to transcribe the data from the
questionnaire and then to key in the data. This technique avoids confusion, especially
with large questionnaires of many items (Cavana et al. 2001). The researcher attached
a coding sheet to each questionnaire as a further check. Finally, all data were entered
directly into the computer by using SPSS software 15.0 as a data file.
6.4.2 Statistical Analysis
Statistical analysis included establishing the central tendency and the dispersion
of the data. The standard deviation, the range, the mean, and the variance in the data,
were used to determine the response to the items and the quality of the data.
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Factor Analysis: Factor analysis is a tool that is part of the multivariate
statistical technique to extract information from large databases and identify the
interrelated data (Hair et al. 2006). In this study, factor analysis was applied before
other statistical analyses to extract the data from total original variance into a smaller
number of factors, or derive a new composite factor for further analysis and
hypothesis testing, using the principal components analysis method (PCA) provided
with SPSS Version 15.0 for Windows. This is discussed further at Chapter 7 Section
7.3.
Pearson’s correlation coefficient (r): This analysis technique observes the
relationship between two variables (Sekaran 2003). The Pearson correlation
coefficient takes values from –1 to +1. However, a correlation of 0 indicates no
relationship between the two variables (Pallant 2005). In addition, the degree of
confidence is measured using a significant 2-tailed test to determine whether the
relationship is statistically significant. The significance level of 0.5 relates to 95 per
cent confidence that the sample is the same as the population. For the purpose of this
study, Pearson’s correlation matrix is used to observe a bivariate correlation to
demonstrate the relationship between two variables.
Independent Sample t-test: An independent sample t-test is used to compare the
mean score, on a continuous variable, for two different groups of subjects (Canava et
al. 2001). The t-test is a test of the null hypothesis that the means of two normally
distributed populations are equal. For the purpose of this study, an independent
sample t-test was used to compare the mean score between the public and private
sector organisations.
Chi-square Test: The chi-square (χ2) test for independence is used to explore the
relationship between two categorical variables. According to Pallant (2005, p. 287),
the chi square (χ2) test ‘compares the frequency of cases found in the various
categories of one variable across the different categories of another variable’. One of
the assumptions is that the lowest expected frequency in any cell should have a value
of 5 or more, or at least 80 per cent of cells should have expected frequencies (Pallant
2005). The chi square (χ2) test was used in this study to identify any difference
between the public and private sector organisations in terms of respondents’ gender,
job tile and age (see Chapter 8)
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Mann-Whitney U Test: The Mann-Whitney U Test is used for differences
between two independent groups on a continuous measure (Pallant 2005). It converts
the scores on the continuous variable to rank across the two groups, then assesses
whether two samples of observations come from the same distribution. Mann-
Whitney U Test was used in this study to evaluate whether the employees’
educational qualifications for each of the public and private sector organisations differ
significantly (see Chapter 8).
Hierarchical Multiple Regression: In hierarchical multiple regression
independent variables enter the equation in an order specified by the researcher. Each
set of independent variables is assessed in terms of what it adds to the equation at its
own point of entry. In hierarchical multiple regression, part correlation (semi-partial
correlation (sr2) is interpreted as the amount of variance added to R2 by each
independent variable at the point that it enters the equation (Tabachnik & Fidell
2007). Part correlation (semi-partial correlation [sr2] is used in this study to express
the specific portion of variance explained by a given independent variable. Part
correlation is different from partial correlation. In a partial correlation,
the contribution of the other independent variables is taken out of both the independent variable and the dependent variable. In a part correlation (semi-partial correlation), the contribution of other independent variables is taken out of only the independent variable. Thus, squared semi-partial correlation express the unique contribution of the independent variable to the total variance of the dependent variable (ibid, p.145).
For this reason part correlation will be used in this analysis. In the hierarchical
regression this identifies which independent variables explain the amount of unique
variance at each step.
6.5 Conclusion
This chapter presents a detailed description of the research design of this study,
concentrating on the theoretical purpose and justification of its methodology:
sampling, data gathering, ethical considerations, questionnaire design, reliability and
validity and an explanation of the data analysis. The next chapter presents the findings
of this study as a result of data analysis. It discusses the data obtained and interprets
the findings in relation to the research aim of the study.
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Chapter 7
Data Analysis
Factor and Descriptive Analyses
Whilst the previous chapter placed employment barriers encountered by Emiratis
within capital theory, this chapter commences the analysis for this quantitative
research. First, the environment and demographic information of the study
participants, UAE national employees from seven organisations in Dubai, is presented
as background to the study. Next, the objectives of factor analysis and its relevance in
this research are explored, together with the selection of methodology for factor
extraction to gain the related variables. All variables for human, organisational and
social capital theory elements are examined. The remainder of the chapter concerns
statistical analyses, particularly differences between Emirati employment in the public
and private sectors, and the interpretation of results. The outcomes from this chapter
answer the research questions:
• Identify factors impacting the employability of Dubai’s UAE nationals
• Establish whether these factors differ for organisations in the public or
private sectors.
7.1 Sample Population Characteristics
To achieve a rigourous analysis of the data, statistical techniques were selected
with cognisance of assumptions underlying their use, and each technique met its
assumptions. For instance, Gravetter and Wallnau (2007) state that to use a chi-square
test for goodness of fit or test of independence, underlying assumptions must be
observed. These assumptions are: 1) independence of observations: thus each observed
frequency is generated by a different subject; and 2) the minimum number of expected
frequencies in any cell is five. These conditions were met.
Data for the study were collected via questionnaire survey between December
2005 and February 2006. The questionnaires were distributed to a sample of 1500
employees working in Dubai organisations (see Appendix 5). The sample of UAE
nationals was purposively drawn from seven organisations: five from the private sector,
two from the public sector. The respondents comprised managers at all levels and
150
administrative staff from these organisations. Participation in this study was voluntary
and with the procedures approved by the Victoria University Ethics committee and all
organisations fully endorsed employee participation. A total of 987 employees
responded, a high return rate of 66 per cent; and 57 responses were discarded due to
irregularities or incompletion. The final sample size of the study was 930 UAE
nationals (an acceptance rate of 62 per cent) as shown below in Table 7.1.
Table 7.1: Number of Survey Respondents
Organisations Number of Surveys Distributed
Number of Surveys returned
Acceptance/Return
Rate
Dubai Municipality 300 237 79% National Bank of Dubai 200 136 68% Department of Health and Medical Services
200 133 67%
Commercial Bank of Dubai 200 130 65% Dubai Aluminium Company 200 105 53% Dubai Telecommunications 200 100 50% Emirates Bank Group 200 92 46% Total 1500 930 62%
Table 7.1 shows that, with a greater number of nationals employed, Dubai
Municipality distributed the highest number of questionnaires, and also had the
highest return rate. The public sector overall offered higher return rates; however,
there was no discernable pattern in the private sector organisations’ return rates (note
financial institutions).
7.1.1 Demographic Data
The gender and age data for respondents in both sectors was established to
determine the sample’s distribution in relation to the nationals’ data shown at Section
2.2. The total gender distribution was 55.6 per cent of employees’ female and 44.4 per
cent male (see Table 7.2).
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Table 7.2: Age, Sector and Gender Distribution of Study Participants
Age Public sector Private sector Total Total Male Female Male Female Male Female 20-25 years 27
2.9% 64 6.9%
119 12.8%
151 16.2%
146 15.7%
215 23.1%
361 38.8%
26-30 years 31 3.3%
66 7.1%
72 7.7%
104 11.2%
103 11%
170 18.3%
273 29.3%
31-40 years 69 7.4%
59 6.3%
46 5%
53 5.8%
115 12.4%
112 12.1%
227 24.5%
41-50 years 31 3.3%
12 1.3%
11 1.2%
6 0.6%
42 4.5%
18 1.9%
60 6.4%
51-60 years 7 0.7%
1 0.1%
0 0%
1 0.1%
7 0.7%
2 0.2%
9 1%
Total 165 17.7%
202 21.7%
248 26.7%
315 33.8%
413 44.3%*
517 55.6*
930 100%
* Percentage differences due to rounding.
Table 7.2 shows 39 per cent of the sample were between 20 and 25 years of age,
29 per cent were between 25 and 30 years, thus over two-thirds of the participants
were 30 years or younger.
7.1.2 Work Experience
Table 7.3 Participants’ Work Experience, by Sector, below follows from the
above findings of the relative youth of the participants.
Table 7.3: Participants’ Work Experience, by Sector
Work Experience Sector Total Public Private 1 year to 4 years 160 (17.2%) 369 (39.7%) 529 (56.9%) 5 years to 9 years 75 (8%) 113 (12.2%) 188 (20.2%) 10 years to 14 years 65 (7%) 48 (5.2%) 113 (12.2%) 15 years to 19 years 47 (5.1%) 13 (1.4%) 60 (6.5%) 20 years to 24 years 12 (1.3%) 18 (1.9%) 30 (3.2%) 25 years or more 8 (0.8%) 2 (0.2%) 10 (1%)
Total 367 (39.4%) 563 (60.6%) 930 (100%)
An attribute of the age cohort of 20 to 25 years, more than half of the
respondents (57%) had work experience of less than 5 years. Of this group, the
majority (40%) were from the private sector and 17 per cent from the public sector.
One-fifth of all participants (20%) reported 5 to 10 years’ work experience. Therefore,
over half (52%) of the respondents lie in the first two work experience categories (1-4
152
years, and 5-9 years) in the private sector, whilst a quarter (25%) of the respondents of
the same cohorts are in the public sector.
7.1.3 Marital Status
Marital status in GCC countries is a variable concerning contribution to the
welfare of others (see Table 7.4).
Table 7.4: Marital Status of Respondents, by Sector
Status of Respondents Sector Total Public Private Single 141 (15.2%) 309 (33.2%) 450 (48.4%) Married 214 (23.0%) 236 (25.4%) 450 (48.4%) Divorced 10 (1.1%) 14 (1.5%) 24 (2.6%) Widowed 2 (0.2%) 4 (0.4%) 6 (0.6%) Total 367 (39.5%) 563 (60.5%) 930 (100%)
Table 7.4 shows that the marital status of the respondents overall was evenly
balanced. However, single people in the private sector comprised the largest number
reflecting their preponderance also in Table 7.3 above.
7.1.4 Educational Achievement
Of importance to the educational delivery in UAE is the educational attainment
of UAE nationals who are employees (see Table 7.5).
Table 7.5: Educational Attainment of Participants, by Sector
Education level Sector Total Public Private No formal education 2 (0.2%) 2 (0.2%) 4 (0.4%) Primary school 1 (0.1%) 7 (0.8%) 8 (0.9%) Secondary/technical school 81 (8.7%) 192 (20.6%) 273 (29.3%) Diploma 38 (4.1%) 109 (11.7%) 147 (15.8%) Higher diploma 34 (3.6%) 68 (7.3%) 102 (11.0%) Bachelor degree 165 (17.7%) 156 (16.8%) 321 (34.5%) Postgraduate degree 41 (4.4%) 21 (2.3%) 62 (6.7%) Others 5 (0.5%) 8 (0.9%) 13 (1.4%) Total 367 (39.4%)* 563 (60.6%) 930 (100%) • Percentage difference due to rounding.
Table 7.5 shows the level of education for Emiratis in both the private and the
public sectors. A total of 34.5 per cent reported a bachelor degree as their highest
level of academic achievement and 29.4 per cent a secondary or technical school
certificate.
153
The findings for educational achievement show a disparity in median
qualification levels between the sectors. Over half the respondents in the public sector
claimed a bachelor’s degree or higher, with the bachelor’s as the median, whilst the
median for the private sector was a certificate, followed by the university
qualification. The higher qualification for the public sector may reflect competition by
Emiratis to access its beneficial working conditions; other options are that the private
sector may recruit different job classifications, or place tertiary qualifications as a
lower priority than other candidate attributes.
The next tables elaborate on the educational achievement of Emirati participants
by considering the numbers who graduated from UAE universities and those who
graduated elsewhere (see Table 7.6).
Table 7.6: Source of Participants’ Tertiary Qualifications, Public Sector
Education Level
Where did you achieve the highest level of education?
UAE GCC Other Arab Countries
Europe USA Australia Canada Total
No formal education
1 (0.3%) 0 0 0 0 1
(0.3%) 0 2 (0.6%)
Primary school
1 (0.3%) 0 0 0 0 0 0 1
(0.3%) Secondary/ technical school
78 (21.3%) 2 (.5%)
1 (0.3%) 0 0 0 0 81
(22.0%)
Diploma 37 (10.1%) 0 1 (0.3%) 0 0 0 0 38
(10.3%) Higher diploma 31 (8.4%) 0 2
(0.5%) 0 1 (0.2%) 0 0 34 (9.3%)
Bachelor degree
140 (38.1%)
4 (1.1%)
8 (2.1%)
2 (0.5%)
11 (3.0%) 0 0 165
(45.0%) Postgraduate degree
9 (2.4%) 0 5
(1.4%) 14 (3.8%)
9 (2.5%)
3 (0.8%)
1 (0.3%)
41 (11.1%)
Others 5 (1.4%) 0 0 0 0 0 0 5
(1.4%) Total 302
(82.3%) 6 (1.6%)
17 (4.6%)
16 (4.3%)
21 (5.7%)
4 (1.1%)
1 (0.3%)
367 (100%)
Predominant in this study were UAE nationals holding a bachelor degree from a
UAE university (38.1% of public sector employees). Those finishing school
comprised the next group, at 21.3 per cent of the study’s public sector employees. Of
Emirati public sector employees educated elsewhere, 3.8 per cent held postgraduate
degrees from European universities, whilst 3 per cent held US bachelor’s degrees;
154
however, a further 2.5 per cent held US postgraduate degrees. USA was therefore the
preferred external source of university qualifications.
Table 7.7 describes the characteristics of education among private sector study
participants.
Table 7.7: Source of Participants’ Tertiary Qualifications, Private Sector
Education Level Where did you achieve the highest level of education?
UAE GCC Other Arab Countries
Europe USA Australia Total
No formal education
2 (0.4%) 0 0 0 0 0 2
(0.4%) Primary school 7
(1.2%) 0 0 0 0 0 7 (1.2%)
Secondary/ technical school
185 (32.8%)
1 (0.2%)
1 (0.2%)
1 (0.2%)
4 (0.7%) 0 192
(34.1%) Diploma 103
(18.3%) 0 2 (0.3%)
1 (0.2%)
2 (0.3%)
1 (0.2%)
109 (19.4%)*
Higher diploma 60 (10.7%) 0 3
(0.5%) 4 (0.7%)
1 (0.2%) 0 68
(12.1%) Bachelor degree 126
(22.4%) 3 (0.5%)
10 (1.8%)
6 (1.0%)
10 (1.8%)
1 (0.2%)
156 (27.7%)
Postgraduate degree 10 (1.8%) 0 0 1
(0.2%) 6 (1.0%)
4 (0.7%)
21 (3.7%)
Others 8 (1.4%) 0 0 0 0 0 8
(1.4%) Total 501
(89.0%) 4 (0.7%)
16 (2.8%)
13 (2.3%)
23 (4.0%)
6 (1.0%)
563 (100%)
A different profile emerged in the private sector (Table 7.7). The majority of
the study’s private sector participants (32.8%) nominated a UAE school certificate
as their highest education level; whilst a bachelor’s degree from a UAE university
was claimed by 22.4 per cent. Postgraduate UAE qualifications bring university-
educated Emirati employees in the private sector to approximately one quarter
(24.2%) of the study’s private sector participants. External qualifications were
minimal, and again focused on US universities (2.8% of the study’s private sector
participants).
Thus over one half (56%) of public sector respondents held university degrees,
40 per cent from UAE universities and some 15 per cent externally; whilst 31 per cent
of private sector respondents were similarly qualified, 24 per cent from UAE
155
universities. The private sector organisations did not appear to recruit primarily on
higher education attainment.
7.1.5 Occupational Classifications
Taking note of the educational achievement findings above, the occupational
classifications of the participants are expected to follow suit. Table 7.8 shows the
results.
Table 7.8: Occupation Classification, by Sector
Occupation Classification Sector Total Public Private Legislators, executives, managers 18 (1.9%) 49 (5.3%) 67 (7.2%) Professionals 37 (4.0%) 41 (4.4%) 78 (8.4%) Paraprofessionals 182 (19.6%) 200 (21.5%) 382 (41.1%) Administration 13 (1.4%) 35 (3.8%) 48 (5.2%) Services and Retail sub-sectors 117 (12.6%) 234 (25.2%) 351 (37.7%) Other 0 4 (0.4%) 4 (0.4%) Total 367 (39.5%) 563 (60.6%)* 930 (100%) • Percentage difference due to rounding.
Table 7.8 findings show that 41 per cent of respondents were paraprofessionals,
that is, those working with professionals; whilst 37.7 per cent were employed in the
service and retail industries. An unexpected outcome, perhaps due to Emiratisation or
the preponderance of private sector participants in the study, is the greater proportions
of Emiratis in the higher job categories.
7.1.6 Remuneration
Finally, the employees were asked for information about their salaries. Table 7.9
shows the distribution of salaries paid to UAE nationals in both sectors.
156
157
Table 7.9: Emirati Remuneration, by Sector Salaries in UAE Dirhams1 per Month
Sector Total Public Private
0– 1,999 1 (0.1%) 2 (0.2%) 3 (0.3%) 2,000- 2,999 1 (0.1%) 1 (0.1%) 2 (0.2%) 3,000- 4,999 11 (1.2%) 29 (3.1%) 40 (4.3%) 5,000- 7,999 63 (6.8%) 177 (19.0%) 240 (25.8%) 8,000- 10,999 82 (8.8%) 141 (15.2%) 223 (24.0%) 11,000-14,000 87 (9.4%) 102 (11.0%) 189 (20.4%) 15,000-19,000 52 (5.6%) 57 (6.1%) 109 (11.7%) 20,000-24,999 41 (4.4%) 34 (3.7%) 75 (8.1%) 25,000-34,999 19 (2%) 14 (1.5%) 33 (3.5%) 35,000 and above 10 (1%) 6 (0.6%) 16 (1.7%) Total 367 (39.5%)* 563 (60.5%) 930 (100%) • Percentage difference due to rounding.
Table 7.9 displays salary levels, the median of which for both sectors is between
UAE Dirhams (AED) 5,000 and AED 14,000 per month (70.2%). However,
comparison of the sectors shows that, while the highest percentage (19%) of the
participants are in the private sector and receive AED 5,000 to AED 7,999 per month,
the highest percentage of participants who are in the public sector (9.4%) received
AED 11,000 to AED 14,000 per month. The preponderant salaries are substantially
higher for the public sector respondents.
7.2 Factor Analysis
The next stage in this study involved factor analysis, an essential step before data
analysis as it plays a unique role in the application of other multivariate techniques, and
provides the tools for analysing the structure of the interrelationships among a large
number of variables. Objectives of factor analysis: data reduction, appropriateness of
factor analysis, and selecting the factor extraction method; are demonstrated by refining
and reducing the scale items to form a smaller number of related variables (Hair et al.
2006). Factor rotation and orthogonal method are also demonstrated.
An objective of factor analysis is to find a means to compress the information
contained in a number of original variables into a smaller set of new, composite
dimensions or variables (factors) with the least loss of information; that is, to search for
and define the fundamental constructs of dimensions assume to underlie the original
variables (Gorsuch 1983). Factor analysis provides the researcher with an apparent 1 One UAE dirham (AED) equals about $0.30 (AUD)
understanding of which variables may act in concert and the number of variables
expected to have an impact on the analysis (Hair et al. 2006).
Factor analysis is used to obtain data reduction by 1) creating a completely new set
of variables, smaller in number, to partly or totally substitute for the original set of
variables, or 2) identifying representative variables from a much bigger set of variables
for use in subsequent multivariate analyses. In either case, the researcher must know
how the variables are interrelated to better interpret the results (Hair et al. 2006).
Before data reduction in this study, data were examined using exploratory factor
analysis, the assumptions and conditions of which were met at the outset. Scales used in
the analysis were refined by the exploratory factor analysis, which ‘searched for
structure’ through human, organisational and social capital elements, so that coherent
subsets independent of each other could be extracted (Tabachnick & Fidell 2001).
Analyses were conducted separately for each set to achieve the best results of scale
items.
7.2.1 Appropriateness of Factor Analysis
The following discussion relates to the application of factor analysis on research
findings and guidelines, and application to this study.
Sample Size: Factor analysis is preferable when observations are not less than 50
or greater than 100, with a minimum of at least 5 times as many observations as the
number of variables to be analysed (Hair et al. 2006). However, Comrey & Lee (1992)
recommend a greater number for the sample, rating 50 as very poor, 100 as poor, 200 as
fair, 300 as good, 500 as very good, and 1000 as excellent. The sample size of this study
is quite large (930), thus considered excellent and exceeding research requirements.
This minimised the risk of over fitting the data (i.e., deriving factors that are sample-
specific with little generalisability). In addition, the sample is homogeneous within its
underlying factor structure.
Statistical Issues: To ensure that the best results and a true representation of the
sample are achieved, the basic assumptions underlying most statistical tests, that is,
normality, homoscedasticity and linearity are investigated. These tests lead to the
consideration of the transformation of variables (see Appendix 6). In fact, some degree
of multicollinearity is desirable, because the objective of factor analysis is to identify
interrelated sets of variables (Hair et al. 2006).
158
Three statistical tests were applied to test the different data sets: a test for the
presence of correlations among the variables; the Bartlett test of sphericity (Bartlett,
1954), which provides the statistical significance that the correlation matrix has
significant correlations among at least some of the variables; and the Kaiser-Meyer-
Olkin (KMO) measure of sampling adequacy to measure the proportion of common
variance in the variables (Hair et al. 2006; Kaiser 1974).
To find whether a particular data set was suitable for factor analysis, the strength
of the intercorrelations among the variables was assessed (Pallant 2005). The
significance of the correlations was measured using the correlation matrix, Bartlett test
and the KMO measure of sampling adequacy (see Table 8.1). The results of bivariate
correlations were significant for most of the variables; the adequacy of the component
factor analysis was evaluated using the Bartlett test, as correlations cannot verify
factorability (Hair et al. 2006). Bartlett’s test of sphericity (p<.05) indicates that
sufficient correlation exists among the variables to proceed. The measure of sampling
adequacy value exceeded .50 for both the oval test and each individual variable (Pallant
2005; Hair et al. 2006; Tabachnick & Fidell 2007).
Selecting the Factor Extraction Method: There are two methods for defining
(extracting) the factors to represent the structure of the variables in the analysis:
principal component analysis (PCA), and common factor analysis (CFA). For the
purpose of this study, the principal component analysis was preferred over common
factor analysis. According to Hair et al. (2006), common factor analysis is more
restrictive in its assumptions, uses only latent dimensions, is more theoretically based
and has several problems. These issues relate to factor indeterminacy and requires the
calculation of the estimated communalities used to represent the shared variance.
Therefore, this study uses PCA as it is preferable where theory and literature in an area
of investigation are limited (Gorsuch 1983), such as this study. Further, it summarises
information to a minimum number of factors (Hair et al. 2006; Tabachnick & Fidell
2007).
There are a number of criteria for the number of factors to extract such as latent
root criterion, a priori criterion, percentage of variance criterion, scree test criterion and
heterogeneity of the respondents (Hair et al. 2006). For the purpose of this study
Kaiser’s scree test and percentage of variance criterion were used to extract factors.
Kaiser’s criterion selects factors where eigenvalues greater than 1 are considered
159
significant. Hair et al. (2006, p.120) state that ‘using the eigenvalue for establishing a
cut-off is most reliable when the number of variables is between 10 and 50’. The scree
test criterion is a graphic test that identifies and retains an optimum number of factors to
be extracted before the point at which eigenvalues level off (Tabachnick & Fidell 2007).
The percentage of variance criterion is an approach based on obtaining a specified
cumulative percentage of total variance with an acceptable solution in the social
sciences that may account for only 60 per cent of the total variance as satisfactory (Hair
et al. 2006).
Factor rotation: Rotation of factor is a determinant of the number of factors in a
set of data, as unrotated factor solutions do not offer an adequate interpretation of the
variables under examination (Hair et al. 2006). Rotation is used to improve the
interpretability and scientific utility of the solution (Tabachnick & Fidell 2007).
However, there are two main approaches to factor rotation, resulting in either an oblique
(correlated) or an orthogonal (uncorrelated) factor solution (Pallant 2005). According to
Tabachnick & Fidell (2007), application of orthogonal rotation results in solutions that
are easier to interpret and to report. In contrast, oblique approaches allow for the factors
to be correlated but they are more complex to interpret, describe and report. Varimax
rotation of the factors improves interpretation by reducing ambiguities that often
accompany initial unrotated factor solutions (Hair et al. 2006). For this study the
orthogonal approach with varimax rotation was selected over the oblique method for
two reasons: as an attempt to minimise the number of variables that have high loadings
on each factor (Pallant 2005), and that interpretation of a factor is easier because the
correlating variables are clearer (Tabachnick & Fidell 2007). A further point, varimax
rotation also tends to reapportion variance among factors so that they become relatively
equal in importance (Tabachnick & Fidell 2007).
Once factor analysis was completed, research continued for further analysis and
hypotheses testing. Therefore, for the purpose of this study the researcher demonstrates
factor rotation with three areas of capital theory, namely, human, organisational and
social capital.
7.2.2 Factor Analysis for Human Capital Components
The 17 questionnaire items used in this study were designed to measure four
elements of human capital theory: education, experience and skill, training and
160
development, and organisational engagement. Prior to performing PCA with varimax
rotation using SPSS Version 15, the suitability of data for factor analysis was assessed.
Given the sample of 930, factor loading of 0.4 and higher was considered significant for
interpretative purposes. The cut-off point was set somewhat low to illustrate the factor
interpretation process with as many significant loadings as possible. The KMO value
was 0.87, exceeding the recommended value of 0.6 (Kaiser 1974) and Bartlett’s test of
sphericity (Bartlett 1954) reached statistical significant (p<.05), supporting the
factorability of the correlation matrix.
Research findings illustrate that Kaiser’s criterion is accurate when the number of
variables is less than 30 and the resulting communalities (after extraction) are all greater
than 0.7. Kaiser’s criterion is also accurate when the sample exceeds 250 and the
average communality is greater than or equal to 0.6 (Andy 2005). Hair et al. (2006)
state that loadings exceeding +0.70 and above are considered indicative of well-defined
structure and are the goal of any factor analysis.
Principal components analysis revealed the presence of two components with
eigenvalues exceeding 1. The two factors solution explained a total of 36.03 per cent of
the variance in the observed values. Items loaded on factor 1, organisational
engagement, contained 9 items. Factor 1 was thus designated organisational
engagement, based on the recommendation of Hair et al. (2006), that variables with
higher loadings influence the name or label selected to represent a factor. The
organisational engagement factor accounted for 27.34 per cent of the variance in the
observed values. Factor 2, training and development, contained 3 times representing the
training environment (further details see Table 7.13) and accounted for 8.39 per cent of
the variance in the observed values. According to Hair et al. (2006) there is no absolute
threshold adopted for all applications; where component analysis for each variable
contributes a value of 1 to the total eigenvalue. Thus, only factors having latent roots or
eigenvalues greater than 1 were considered significant and used in this study. Most
items loaded quite strongly (above 0.4) on the first two components, with fewer items
loaded on components 3, 4 and 5. Therefore, the PCA was rerun based on two factors
instead of four, as some components loaded fewer than three items and this outcome is
weaker and generally unstable; 5 or more strongly loading items are desirable and
indicates a stronger factor (Costello & Osborne 2005). Further, theoretically meaningful
factors were sought, together with the most efficient factor structure.
161
However, this preparation does not change the underlying findings; it presents the
pattern of loading in a manner that is easier to interpret. The result eventually shows a
marked pattern of variables where significant loadings for each factor are evident.
Factor 1 (organisational engagement) has nine variables with significant loadings, and
factor 2 (training and development) has three variables. Any dual loadings or variables
(items) that did not load to any factor were discarded. Overall, five items were omitted
from the human capital analysis, questions 3, 1, 51, 53 and 12, variables with higher
loadings are considered more important and have greater influence on the name or label
selected to represent a factor (Hair et al. 2006). Thus, all the significant variables were
examined for a particular factor and, placing greater emphasis on those variables with
higher loadings, a name or label was assigned to a factor to accurately reflect the
variables loading on that factor, as shown below.
Factor 1: Organisational engagement: questions 13, 8, 42, 31, 45, 34, 17, 41, and
49
Factor 2: Training and development: questions 33, 38 and 36.
The variance analysis is set out at Table 7.10 below.
Table 7.10: Total Variance of Human Capital Components
Component
Initial Eigenvalues Rotation Sums of Squared Loadings Total Percentage
of Variance Cumulative Percentage
Total Percentage of Variance
Cumulative Percentage
Organisational engagement 4.70 27.64 27.64 3.349 19.700 19.70
Training and development 1.42 8.39 36.03 2.777 16.336 36.03
The tests of adequacy and sphericity are shown at Table 7.11.
Table 7.11: KMO and Bartlett's Tests of Human Capital Components
KMO Measure of Sampling Adequacy. .874
Bartlett's Test of Sphericity Chi-square approximations 3702.452 Degrees of freedom 136 Sig. .000 Cronbach’s alpha .833
The comparison value between eigenvalues and parallel analysis are summarised
below. Only those factors that were larger than the criterion value from the parallel
162
163
analysis were retained, if less, then they were rejected. Thus, the significant variables
for a particular factor were determined and, placing greater emphasis on those variables
with higher loadings, a name or label was assigned to each factor. These are described
at Table 7.12.
Table 7.12: Human Capital: Comparison Analysis of Eigenvalues Components
(PCA) with Corresponding Criterion Values from Parallel Analysis.
Component Number
Actual Eigenvalue from PCA
Criterion Value from Parallel Analysis
Decision
1 4.700 1.24 Accept 2 1.426 1.19 Accept 3 1.341 1.15 Reject 4 1.128 1.12 Reject 5 1.038 1.09 Reject
The outcomes from the rotated component matrix of scale for factor 1,
organisational engagement and factor 2, training and development are set out in Table
7.13.
Table 7.13 Rotated Component Matrix of Scale Items for Human Capital
Variable Scale items Mean SD Factor loading
No. items in set
Reliability Overall
reliability
Organisational engagement
13. Frequently, I think of quitting my job. 2.97
1.20
.674
9 .771
0.77
8. I would be very happy to spend the rest of my career with this organisation 2.76
1.15
.666
.754
42. There is a sense of being a part of a family in this organisation. 2.38
1.03
.660
.747
31. My organisation values skill and experience when recruiting and promoting employees.
2.86
1.16
.573
.752
45. This organisation has a poor future unless it attracts better managers. 3.21
1.24
.556
.790
34. My organisation does what it can to ensure the well being of its employees. 2.84
1.08
.536
.752
17. I do not feel emotionally attached to this organisation. 2.70
1.13
.523
.789
41. I believe employees really care about each other in this organisation. 2.73
1.00
.492
.762
49. My organisation supports employees to balance work and family responsibilities.
2.87
1.06
.430
.767
Training and development
33. My organisation provides me with training opportunities enabling me to extend my range of skills and abilities.
2.49
1.15
.703
3 .745
0.79
38. My organisation is committed to the training and development of its employees
2.28
0.97
.674
.677
36. My organisation supports my attempts to acquire additional training or education to develop my career.
2.46
1.03
.644
.716
164
165
Component Number 15141312111098765432 1 17 16
5 4 3 2 1 0
The following Figure 7.1 illustrates the results for this test.
Figure 7.1: Eigenvalue Plot for Scree Test Criterion for Human Capital Components
Reliability for each multi-item scale was assessed using Cronbach’s Alpha.
Results of the reliability analysis are reported in Table 7.13 above. Overall, strong
reliability is demonstrated with Cronbach alpha ranging from 0.677 to 0.790 and overall
human capital components have α =0.833. None of the items shown would substantially
affect reliability if they were deleted, with the exception of question 45: deleting this
question would increase Cronbach’s Alpha from 0.83 to 0.84. Nevertheless, this
increase is not dramatic and both values reflect a reasonable degree of reliability.
The result indicates that all items are positively contributing to the overall
reliability. The overall Cronbach’s Alpha is also excellent (0.83), above 0.8, which
indicates good reliability. According to Cavana et al. (2001), reliability of less than 0.6
is considered poor, those in the 0.7 ranges are acceptable, and those over 0.8 are
preferred. Other studies including Malhotra (1993) suggest 0.6 and above is acceptable,
especially for initial investigations (see Table 7.14).
Table 7.14: Mean and Standard Deviation for Human Capital Components
Factor Mean SD Organisational engagement 2.81 .679 Training and development 2.40 .879 Human capital factors 2.71 .654
N = 930
Table 7.14 shows the means and standard deviations of organisational
engagement (M=2.81, SD=0.67), training and development (M=2.40, SD=.87), and
overall human capital variables (M=2.71, SD=0.65)
7.2.3 Factor Analysis for Organisational Capital Components
The same procedure was followed for organisational capital items. The 29 items
of the organisational capital, notably: English fluency, career development,
organisational culture, working conditions, Emiratisation policies and remuneration
were subjected to Principal components analysis.
Principal components analysis revealed the presence of seven components with
eigenvalues exceeding 1. The four factors solution explained a total of 48.23 per cent
of the variance. Items loaded on factor 1, organisational culture, contained 15 items,
relating to policies, working conditions and workplace atmosphere. This result
indicated that organisational culture is not only a dimension describing the importance
of culture to the organisation; it includes workplace policies and conditions. This
factor accounted for 30.58 per cent of the variance in the observed values. Factor 2,
career development, contained 7 items, three of which refer to participants’ careers,
two regarding English fluency and one item for workplace environment. This factor
accounted for 6.83 per cent of the variance in the observed values. Factor 3,
remuneration, contained 4 items on organisational salary structure and current salary,
and accounted for 5.69 per cent of the variance in the observed values. The last, factor
4 English fluency, contained 2 items and accounted for 5.11 per cent of the variance
in the observed values. Parallel analysis was applied and showed four components
with eigenvalues exceeding the corresponding criterion values for a randomly
generated data matrix of the same size (29 variables x 930 respondents). Parallel
analysis is a technique shown to be the most accurate in identifying the correct
number of components to retain, with both Kaiser’s criterion and Catell’s scree test
tending to overestimate the number of components (Hubbard & Allen 1987; Zwick &
Velicer 1986). Table 7.15 describes the results from this sector of factor analysis.
166
Table 7.15: Total Variance of Organisational Capital Components
Component Initial Eigenvalues Rotation Sums of Squared Loadings
Total Percentage of Variance
Cumulative Percentage
Total Percentage of Variance
Cumulative Percentage
Workplace environment
8.87 30.58 30.58 6.23 21.48 21.48
Career development
1.98 6.83 37.42 3.03 10.45 31.93
Remuneration 1.65 5.69 43.11 2.93 10.10 42.04 English fluency
1.48 5.11 48.23 1.79 6.19 48.23
The tests of adequacy and sphericity are shown at Table 7.16.
Table 7.16: KMO and Bartlett's Tests of Organisational Capital Components
KMO Measure of Sampling Adequacy. .925 Bartlett's Test of Sphericity
Chi-square approximations 10056.069 Degrees of freedom 406 Sig. .000 Cronbach’s alpha .899
Inspection of the correlation matrix revealed the presence of many coefficients
of 0.4 and above. The KMO value shown at Table 7.16 was .925, exceeding the
recommended value of .6 (Kaiser 1974) and Bartlett’s test of sphericity (Bartlett;
1954) reached statistical significance, supporting the factorability of the correlation
matrix.
The first eigenvalue obtained in SPSS was compared with the corresponding first
value for the random results generated by parallel analysis. The majority of the items
loaded quite strongly on the first four components. Very few items loaded on
components 5, 6 and 7. This supports the conclusion from the parallel analysis to retain
only 4 factors for further investigation. Any dual loadings or any variables (items) that
did not load to any factor were omitted, thus two items, questions 6 and 32, were
rejected.
The comparison value between eigenvalues and parallel analysis are summarised
below. Only those factors that were larger than the criterion value from the parallel
analysis were retained. Thus, the significant variables for a particular factor were
determined and, placing greater emphasis on those variables with higher loadings, a
name or label was assigned to each factor. These are described at Table 7.17.
167
168
Table 7.17: Organisational Capital: Comparison Analysis of Eigenvalues Components
(PCA) with Corresponding Criterion Values from Parallel Analysis
Component Number
Actual Eigenvalue from PCA
Criterion Value from Parallel
Analysis
Decision
1 8.871 1.34 Accept 2 1.982 1.29 Accept 3 1.650 1.25 Accept 4 1.484 1.22 Accept 5 1.198 1.20 Reject 6 1.137 1.17 Reject 7 1.007 1.15 Reject
The outcomes for organisational capital analysis are four variables and 28 items
as follows:
• Organisational culture with 15 questions, items no. 4,7,9,14, 16, 22, 25, 37,39,
40, 43, 44, 46, 47 and 48,
• Career development with 7 questions, items no. 2,10, 15, 21, 23, 28 and 29.
• Remuneration with 4 questions, items no. 6, 11, 20 and 26.
• English fluency with 2 questions, items no. 24 and 5.
These are described in full at Table 7.18 below.
Table 7.18: Rotated Component Matrix of Scale for Organisational Capital
Variable Scale items Mean SD Factor Loading
No. Items in Set
Reliability Overall
reliability
Organisational culture
46. Management here does a good job of communication with employees. 2.68
1.06
.728
15 .883 0.89 (continued)
40. There is opportunity to discuss my training and development requirements with my organisation.
2.61
1.04
.723
.883
47. In my organisation, conflicts are resolved to the satisfaction of those concerned.
2.75
0.98
.666
.885
39. People in my organisation are encouraged to make suggestions for improvement in our work.
2.31
1.04
.662
.885
44. My organisation cares about whether or not I achieve my career goals. 2.78
1.05
.643
.884
25. I am satisfied with the way these polices are administrated by this organisation.
2.91
0.96
.619
.883
43. My manger constantly updates me with relevant organisation information. 2.66
1.14
.604
.886
48. Employees in my work unit are like a family. 2.53
1.07
.604
.888
37. My organisation provides tasks that give me the opportunity to develop and strengthen new skills.
2.47
0.98
.598
.885
16. I feel satisfied with the way in which the organisation’s polices are applied. 2.88
1.00
.580
.884
14. I am satisfied with organisation policies and practices toward employees. 2.98
1.09
.570
.884
22. I am satisfied with the way employees are informed about organisation policies.
2.79 1.07 .535 .887
169
170
Table 7.18 (continued)
Variables Scale items Mean SD Factor Loading
No. Items in Set
Reliability Overall
reliability
Organisational culture
4. I have good physical working conditions (total time, shift, good ventilation and lighting, adequate work space) in this organisation.
2.44 1.16 .513 15 .889 0.89
9. My job gives me enough time for family and social activities. 2.84 1.25 .413 .897 7. My health has not suffered as a result of working for this organisation. 2.49
1.23 .408 .895
Career development
23. Overall, I am satisfied with the success I have achieved in my career. 2.28 1.04 .651
7 .685 0.74
15. Overall, I am satisfied with the progress I have made toward meeting my goals for developing new skills.
2.31
0.99
.612
.689
29. My organisation expects me to be fluent in English Language. 1.97 0.94 .604 .736 21. My work in this organisation is interesting and challenging. 2.46 1.06 .552 .687 28. I am satisfied with the chances for advancement in my job. 2.48 1.03 .551 .688 10. My job requires me to do many different tasks at work, using a variety of
skills and knowledge. 2.23
1.05
.508
.721
2. The importance of English language in my job cannot be underestimated. 1.59
0.88
.499
.741
Remuneration
11. I am satisfied with this organisation’s salary structure. 3.22 1.18 .812 4 .670 0.79 26. I am satisfied with my current salary. 3.20 1.20 .769 .717 20. I am satisfied with similarity of salary paid throughout departments in this
organisation. 3.15
1.14
.737
.730
6. I am satisfied with the way promotions are awarded in this organisation. 3.38
1.17
.495
.813
English fluency 24. English is the biggest problem preventing me from being competitive
among expatriates in my organisation. 3.51
1.31
.839
2 N/A 0.77
5. English is the biggest problem preventing me from participating effectively or from gaining promotion in my organisation.
3.71
1.17
.829
N/A
The following Figure 7.2 illustrates the break result for this test.
Component Number2928272625242322212019181716151413121110 9 8 7 6 5 4 32 1
10 8 6 4 2 0
Figure 7.2 Eigenvalue Plot for Scree Test Criterion for Organisational Capital Components
Reliability for each multi-item scale was assessed using Cronbach’s alpha. Results
of the reliability analysis are reported in Table 7.18 above. Overall, strong reliability is
demonstrated with Cronbach alpha ranging from 0.67 to 0.90 and organisational capital
items have Cronbach alpha =0.90. Results indicate that all selected items are
contributing to the overall reliability. The overall α is also significant at 0.90, as 0.9
indicates excellent reliability. Table 7.19 describe this analysis.
Table 7.19: Mean and Standard Deviation for Organisational Capital Components
Component Mean SD
Organisational culture 2.67 .683 Career development 2.18 .624 Remuneration 3.18 1.002 English fluency 3.61 1.123 Organisational capital components 2.67 .557
N=930
The mean and standard deviation for organisational culture (M=2.67, SD=0.68),
career development (M=2.18, SD=0.62), remuneration (M=3.18, SD=1.002), English
fluency (M=3.61, SD=1.12), and overall organisational capital components (M=2.67,
SD=0.557) are shown in Table 7.19.
171
7.2.4 Factor Analysis for Social Capital Components
For social capital factor analysis, twenty-one items, notably gender inequality,
trust and wasta (nepotism) were subjected to PCA, which revealed the presence of six
components with eigenvalues exceeding 1. Items, unique to the factor, loaded on factor
1, gender inequality, contained 7 items. This factor accounted for 19.31 per cent of the
variance in the observed values. Trust, representing trust in the organisation and factor
2, contained 3 items and accounted for 10.117 per cent of the variance in the observed
values. Factor 3, social justice, contained 5 items, represented a socialist’s justice for
female behaviour, accounted for 8.08 per cent of the variance in the observed values.
The last factor, wasta, contained 3 items represented nepotism and accounted for 7.67
per cent of the variance in the observed values. Parallel analysis was undertaken which
showed five components with eigenvalues exceeding the corresponding criterion values
for a randomly generated data matrix of the same size (21 variables x 930 respondents).
The results are displayed at Table 7.20.
Table 7.20: Total Variance of Social Capital Components
Component Initial Eigenvalues Rotation Sums of Squared Loadings
Total Percentage of Variance
Cumulative Percentage
Total Percentage of Variance
Cumulative Percentage
Gender inequality 4.056 19.312 19.312 2.820 13.428 13.428
Trust 2.125 10.117 29.429 2.364 11.255 24.683 Social justice 1.698 8.085 37.515 2.239 10.661 35.344 Wasta (nepotism) 1.612 7.678 45.193 2.068 9.849 45.193
Inspection of the correlation matrix revealed many items with coefficients of 0.4
and above. These results are set out at Table 7.19.
Table 7.21: KMO and Bartlett's Tests of Social Capital Components
KMO Measure of Sampling Adequacy. 0.785
Bartlett's Test of Sphericity Chi-square approximation 4234.371 Degree of freedom 210 Sig. .000 Cronbach’s alpha 0.706
172
173
The Kaiser-Meyer-Oklin value shown at Table 7.19 was 0.78, exceeding the
recommended value of 0.6; and Bartlett’s test of sphericity reached statistical
significance, supporting the factorability of the correlation matrix.
The first eigenvalue obtained in SPSS was compared with the corresponding
first value for the random results generated by parallel analysis. The majority of items
loaded quite strongly on the first four components. Any dual loadings or any variables
(items) that did not load to any factor were dropped. Three items were removed from
the social capital factors and these items were questions 30, 35 and 55. Four factors
remained for further investigation. The comparison value between eigenvalues and
parallel analysis is summarised below. Only those factors that were larger than the
criterion value from the parallel analysis were retained, except for factor 5, discarded
because the factor contained fewer than two items, a number which renders the factor
weak and unstable (Costello & Osborne 2005). Thus, the significant variables were
examined for a particular factor and, placing greater emphasis on those variables with
higher loadings, a name or label was assigned to the factor that accurately reflects the
variables loading to it. Social capital therefore has four variables and 18 items as
follows:
o Gender inequality, with 7 questions, items no. 2, 4, 5, 6, 8, and question 6,
part 2.
o Trust, with 3 questions, items no. 18, 19 and 27
o Social justice, with 5 questions, items no. 2, 1, 10, 7; and question 3 in part 2.
o Wasta, with 3 questions, items no. 52, 50 and 54.
Table 7.22 summarises the decisions outcomes from this test.
Table 7.22: Social Capital: Comparison Analysis of Eigenvalues Components (PCA)
with Corresponding Criterion Values from Parallel Analysis
Component Number
Actual Eigenvalue from PCA
Criterion Value from Parallel Analysis
Decision
1 4.056 1.27 Accept 2 2.125 1.23 Accept 3 1.698 1.19 Accept 4 1.612 1.16 Accept 5 1.308 1.13 Reject 6 1.03 1.10 Reject
Variables for Table 7.23 described and analysed as follows:
Table 7.23: Rotated Component Matrix of Scale for Social Capital
Variable Scale items Mean SD Factor loading
No. Items in Set
Reliability Overall reliability
Gender inequality
2.4. My organisation’s polices and practices hinder women’s career development
3.62
1.07
.719 7 .683 0.74
2.5. Training opportunities and career progression are limited and very slow for women in this organisation.
3.53
1.17
.717 .686
2.9. The lack of a professional woman’s network creates a major void for women aspiring to a professional managerial position.
3.02
1.06
.672 .694
2.8. The possibility of pregnancy makes employers reluctant to hire women in management position.
3.04
1.12
.642 .699
2.12. Employers in my organisation feel that employing females is a short-term investment because females are known to leave, after short periods of employment, for family reasons.
3.17
1.12
.550
.707
2.11. Cultural differences in the perception of power and authority in UAE are an important factor explaining women’s exclusion from leadership.
3.02
1.02
.451
.730
2.6. Men and women have the same employment opportunities in this organisation.
3.55
1.20
.431 .742
Trust
18. I trust management to look after my career interests. 2.81
1.06
.786 3 .484 0.70
19. In general, I trust this organisation to keep its promises or commitments to me and other employees.
2.87
1.09
.778 .551
27. I trust people I work with to lend me a hand if I need it. 2.24
1.03
.645 .761
Social justice
2.2. Women are not competitive enough to be successful in this organisation. 3.90
1.08
.724 5 .578 0.66
2.1. Women lack the skills and ability for management position in this organisation.
3.77
1.19
.697 .574
2.10. On average, a woman who stays at home all the time with her children is a better mother than a woman who works outside the home.
2.90
1.33
.663 .611
174
175
2.7. Traditional Arab/Islamic societies maintain that first and foremost, women should prepare themselves for the domestic career of being a wife and mother.
2.72
1.26
.565
.621
2.3. To achieve a high position in this organisation, a woman has to sacrifice some of her femininity.
3.32
1.34
.473 .645
Wasta (nepotism)
52. When it comes to finding a really good job, “who you know” is more important than “what you know”.
2.36
1.23
.821 3 .665 0.77
50. In order to get a really good job, friends or family member in high positions are needed.
2.47
1.31
.818
.660
54. Wasta is important in personal life 2.43 1.34 .769 .739
176
Component Number21 20 1918171615141312111098765 4 3 2 1
5
4
3
2
1
0
Reliability for each multi-item scale was assessed using Cronbach’s alpha. Results
of the reliability analysis are reported in Table 7.23 above. Overall, strong reliability is
demonstrated with coefficient alpha ranging from 0.484 to 0.760 and overall social
capitals have α =0.71. Therefore, no item would substantially affect reliability if
deleted; question 27 as an example, if removed would increase α from 0.71 to 0.76.
Nevertheless, as the component contained only 3 items and the item was deleted, the
factor weakened and became unstable (Costello & Osborne 2005). Overall, results
indicate that all items contribute to the overall reliability, α > 0.7. The mean and
standard deviation for gender inequality (M=3.27, SD=0.69), trust (M=3.32, SD=0.83),
social justice (M=3.32, SD=.807), wasta (M=2.41, SD=1.06), and overall social capital
(M=3.04, SD=.478) as shown in Figure 7.3.
Figure 7.3 Eigenvalue Plot for Scree Test Criterion for Social Capital Components
The following Table 7.24 describes the values for these iterations.
Table 7.24: Mean and Standard Deviation for Social Capital Components
Components Mean SD
Gender inequality 3.27 .691 Trust 2.63 .839 Social justice 3.32 .807 Wasta 2.41 1.067 Social capital 3.04 .478
7.2.5 Summary of Factor Analysis
Using the principal components analysis method, factor analysis was applied to
reduce or extract the data for further analysis and hypothesis testing. Principal
components analysis revealed ten components with eigenvalues exceeding 1: two
human capital variables, four organisational capital variables, and four social capital
variables. The two human capital variables explained 36.03 per cent of human capital
variance. Organisational capital variables explained 48.23 per cent, and social capital
factors explained a total of 19.31 per cent, respectively. The results of factor analysis
revealed that the data is now ready for further analysis and hypotheses testing.
7.3 Descriptive Statistics Analysis
The above sections describe the processes by which the data were selected
through factor analysis and tested for reliability and validity. The following Table
7.25 encapsulates these results to continue the study analysis.
Table 7.25: Summary of Results of All Component Analyses
Component Total Items
Items Deleted
Items Retained Reliability
Hum
an capital
Education 1 3 0 0
Experience and skill 3 1 & 51
31 .081
Training and development
4 53 33, 36 & 38 0.79
Organisational engagement
9 12 8, 13, 17, 34, 41, 42, 45 & 49
0.79 O
rganisational capital
Emiratisation policies 4 0 14, 16, 22 & 25 0.89
Career development 5 6 10, 15, 23 & 28 0.74 Remuneration 4 0 6, 11, 20 & 26 0.81 Workplace environment 2 4 7 0.89 Organisational culture 11 1 & 32 21, 37, 39, 40, 43,
44, 46, 47 & 48 0.89
English fluency 4 0 2, 5, 24 & 29 Range between 0.74- 0.77
Social capital
Gender inequality 12 0 b1,b2,b3,b4,b5,b5,b6,b7,b8,b9,b10,b11 & b12
Range between 0.66 - 0.74
Trust 4 35 18,19 & 27 0.70
Wasta 5 30 & 55 50, 52 & 54 0.77
Total 68 12 56
177
In this section, the mean, standard deviation and frequency values of study
participants’ perceptions from each of the public and private sectors are investigated;
further, results by sector are examined to determine trends and anomalies. An
independent-sample t test is then used to compare mean values between sector
participants. To facilitate analysis, data from the questionnaire responses, ‘strongly
agree’ and ‘agree’ were combined. In the first section, human capital will be analysed
based on two variables, namely, organisational engagement and training and
development.
7.3.1 Descriptive Statistics for Human Capital
Organisational Engagement: Interpretation of the results from organisational
engagement in public and private sectors found that nearly 12.5 per cent in the public
and 12.4 per cent in the private sector agreed that they are not thinking of quitting their
job, have a sense of being a part of family, care about each other, and that their
organisation supports employees in balancing their work and family responsibilities
(M=2.81, SD=0.68). To measure the differences between the two groups, an
independent samples t test was applied. There was no significant difference in values
for the public sector (M=2.83, SD=0.669) and the private sector [M=2.79, SD=. 685; t
(928) = .892, p=0.373]. Table 7.26 illustrates these results, which are discussed at
Section. 9.2.2.
Table 7.26: Organisational Engagement Mean and Standard Deviation, by Sector
Factor
Sector Results
Public Private Mea
n SD Difference
Organisational engagement
46 12.5%
70 12.4% 2.81 .68 No
p > 0.05
Training and development: Of public sector participants, 40.6 per cent were
satisfied that their organisation provided them with opportunities to extend their skills
and abilities, and additional education in their career path; and thus was committed to
their training and development. Nearly half the respondents (49.9 per cent) in the
private sector concurred. This is an interesting result given that the private sector
participants are more aware of the importance of training (M=2.40, SD=0.879). These
findings are not consistent with those of Al-Lamki (1998) and Freek (2004) who found
that UAE nationals working in the private sector left their jobs due to insufficient
178
opportunity for further learning and training. This result shows that the private sector is
more supportive in providing UAE nationals with sufficient training compared to the
public sector (see Section 9.4.5). The results are described at Table 7.27.
Table 7.27: Training and Development Mean and Standard Deviation, by Sector
Factor
Sector Results
Public Private Mea
n SD Difference
Training and Development
149 40.6%
281 49.9%
2.40
.879
Yes p< 0.05
Grounds for reaching this conclusion include the selection for this study of private
sector organisations, which in recent years received quality awards, such as the Dubai
Quality Award, and these organisations have demonstrated in national surveys that they
provide the best working environments. Another reason could be the methodology,
which differs from previous qualitative studies. This quantitative study was conducted
through a questionnaire survey, while most previous studies such as Tanmia and
Abdelkarim (2001) used a qualitative methodology and therefore the results differ. In
addition, the sample of five private organisations is not representative of those of past
studies, which examined the private sector as a whole. Moreover, it is possible that the
questionnaire may unintentionally be skewed toward important variables in the private
sector, and omit other important variables in the public sector, although the questions
were specifically chosen to avoid such bias. Finally, the practices of the private sector
toward Emiratisation may have undergone change since 2002, the date of the latest prior
research, due to UAE Emiratisation programs and economic expansion.
An independent samples t test was conducted to compare the two sectors. There
was a statistically significant difference in values for the public sector (M=2.52,
SD=0.896) and the private sector [M=2.33, SD=0.861; t (928) = 3.264, p=0.001]. Thus,
it can be concluded that the private sector provides more opportunity to their employees
than the public sector. Further discussion is provided at Section 9.4.5.
In the next section, organisational capital is discussed based on four variables,
notably, organisational culture, career development, remuneration and English fluency.
7.3.2 Descriptive Statistics for Organisational Capital
Organisational culture: The summary statistics for organisational culture involve
frequency, mean and standard deviation. Overall, 13.9 per cent of respondents in the
179
public sector agreed that: their manager does a good job of communication with
employees; that conflicts are resolved to the satisfaction of those concerned; that the
manager constantly updates them with relevant organisational information; that they are
satisfied with the way in which the organisation’s polices are applied; and that they
have good physical working conditions. This results in 86.1 per cent of the participants
who reported otherwise; they are not satisfied with their working environment. For the
private sector, 18.7 per cent of respondents agreed with the satisfied respondents above
(M=2.67, SD=0.683). These findings confirm those of Freek (2004) and Abdelkarim
(2001) that many UAE national employees are facing workplace issues relating to their
culture, particularly in the private sector. Other studies, such as Al-Lamki (2000) and
Al-Dosary (2004), indicate the importance of developing and promoting a culture of
coordination and collaboration between all government entities entrusted with the
responsibility of localisation (Emiratisation). However, an independent sample t test
found no difference between the public sector (M=2.70, SD=.658) and the private sector
[M=2.65, SD=0.698; t (928), p=1.222, p=0.222]. Therefore, it is deduced that both
sectors are facing culture issues, and the organisational culture for UAE nationals has
not changed compared to previous studies. Discussion of this will be provided in
Chapter 9. Table 7.28 illustrates these results.
Table 7.28: Organisational culture Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Organisational culture 51 13.9%
105 18.7%
2.67
.683
No p> 0.05
Career Development: For career development, 39.8 per cent of respondents in the
public sector are satisfied with their careers; their work is interesting and challenging;
they have chances for advancement and for doing different tasks at work; they are able
to use a variety of skills and talents. Just above half of respondents (50.6 per cent) in
the private sector demonstrated the same result (M=2.18, SD=0.624). Therefore,
participants in the private sector were more satisfied with career development than
those in the public sector, demonstrating that employees in the private sector are
content with their work and promoted faster than those in the public sector. To
compare the career development mean values between the public and private sector, an
independent samples t test was conducted. There was a statistically significant
180
difference in values for the public sector (M=2.27, SD=0.623) and the private sector
[M=2.12, SD=0.617, t (928) =3.661, p=.000]. Table 7.29 describes the outcomes for
this factor. Further discussion is included in Chapter 9.
Table 7.29: Career Development Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Career development 146 39.8%
285 50.6% 2.18 .624 Yes
P <0.05
Taken together, these findings do not coincide with previous studies such as Freek
(2004) and Tanmia (2004), who found a higher probability of labour turnover in the
private sector, due in part to employers’ general lack of policies to promote career
development. Another study of 1300 employees in the private sector conducted by
Abdelkarim and Ibrahim (2001) found that the majority of UAE nationals prefer to
work in the public sector due to better career opportunities. The situation has apparently
turned around in the ensuing years, and it now appears that the private sector, given its
size and diversity, is offering greater opportunities through Emiratisation.
However, these results can only be generalised to on the following grounds to
organisations employing professionals.
• This study was restricted to five private organisations and is not representative
of past studies, which relate to the private sector as a whole. The case for this
restriction is argued on the nature of the robust UAE economy, rapid growth in
the construction industry and fuelled by unskilled labour. Although data is
sparse, there are about 2. 6 million workers in UAE, including 2.2 million non-
nationals (Table 3.7) who are largely itinerant labour, an estimated 1.9 million
unskilled and without formal education. Emiratisation’s principal aim is to
replace highly skilled non-nationals, managers and professionals, with little
documented success to date. With the continuing emphasis on Emiratisation
over the last half-decade and as UAE’s socioeconomic structure develops,
relevant policies are increasingly adopted by progressive firms. Therefore, this
study aims to identify the factors that support Emiratisation at a leadership
level, and thus its target sample are UAE nationals employed by relevant
organisations.
181
• The methodology for this study was based on quantitative analysis compared
to the qualitative analysis of previous studies. Further discussions are at Section
9.4.5.
Remuneration: A number of studies found that the remuneration has a significant
positive impact on organisational commitment. The analysis results show that 16.1 per
cent of employees in the public sector were satisfied with their organisation salary
structure, its application throughout the organisation, and their current salary, while 19
per cent from the private sector were similarly satisfied (M=3.18, SD=1.00). An
independent samples t test compared the values between the two sectors and found there
was no statistically significant difference between the public sector (M=3.17,
SD=0.933) and the private sector [M=3.19, SD=1.04; t (928) =-.205, p=.837]. These
results however do not correspond with prior studies such as Tanmia (2004), which
found that wage differentials for UAE nationals were an obstacle when working in the
private sector. Another study, by Berengaut and Muniz (2005), also provides empirical
evidence that UAE nationals have a strong preference for the public sector due to the
sector’s high salary structures, which, on average, they cannot attain in the private
sector. Freek (2004) conducted a qualitative study of 54 Emirati finance sector
employees in Dubai, finding that their expectations regarding status, salary and
promotion were not met. Similar to restrictions emerging on previous research findings,
the results of this study cannot be generalised, as noted above. Nevertheless, it appears
that both sectors have similar remuneration structures and the remuneration in both
sectors is indistinguishable. Discussion of this matter is provided in Chapter 9. Table
7.30 presents the results for the remuneration and compares the difference between the
public and private sectors.
Table 7.30: Remuneration Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Remuneration 59 16.1%
107 19.0% 3.18 1.00 No
p>0.05
English fluency: The results for this factor indicates that 13.1 per cent of
respondents in the public sector see English as the major impediment preventing them
from being competitive among foreigners in their organisation and that it restricts them
from participating effectively and thus gaining promotion. In the private sector, 16.3 per
182
cent of employees agreed to these sentiments (M=3.61, SD=1.12). Identifying
differences between the sectors, an independent samples t test indicated statistically
significant differences between the public sector (M=3.72, SD=1.094) and the private
sector [M=3.53, SD=1.13; t (928) =2.417, p=0.016]. Table 7.31 presents the results of
the importance of English fluency in the UAE workforce environment.
Table 7.31: English Fluency Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
English Fluency 48 13.1%
92 16.3% 3.61 1.12 Yes
p<0.05
Results show that English is an important element in both sectors and these results
confirm prior studies, including Abdelkarim (2001b), who investigated the attitudes of
1300 employees in the UAE private sector and found that 32 per cent of respondents
said that government intervention was necessary to improve English language training
throughout the school years. From the above analysis, English fluency is a significantly
important factor in the workplace, particularly the private sector which competes
globally. Discussion of this section is at Section 9.3.2.
In the next section, the focus is on social capital, which encompasses four
variables, gender inequality, trust, social justice and wasta.
7.3.3 Descriptive Statistics for Social Capital
Gender inequality: Examination of results shows that only 3 per cent in the public
sector agreed that their organisation’s policies and practices hinder women’s career
development, opportunities for career progression, lack of women’s network and
cultural difference in the perception of power and authority. On the other hand, 5 per
cent of participants had the same views in the private sector (M=3.27, SD=0.691). This
suggests that 97% and 95% respectively of respondents in the public and private sector
disagreed that their organisation’s policies and practices actively hinder women’s career
development. It is quite interesting to note that employees in both sectors perceive no
obstacles with their progression, and men and women have the same employment
opportunities. Table 7.32 provides the summary statistics of the career development in
the public and private sector.
183
Table 7.32: Gender Inequality Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Gender inequality 11 3%
31 5% 3.27 .691 Yes
p< 0.05
The results do not correspond with earlier studies such as that of Adam’s (2003)
who found that the gap in pay may also be connected to the pace of career development,
in which UAE nationals males have greater opportunity compared to UAE females.
Another study by Tanmia (2004) found that 37 per cent of women participants reported
dissimilarities in the level of earnings between themselves and male age groups at the
same level of occupation. To test the difference between both sectors, an independent
samples t test indicated a statistically significant difference in values in the public sector
(M=3.35, SD=.665) and the private sector [M=3.22, SD=.704; t (928) = 2.699, p=.007].
This suggests that the situation of women’s career progression in the private sector is
slightly better than in the public sector. Again, the result cannot be generalised, as
discussed prior to this component. Thus, based on these results, it is concluded that
gender inequality is not an issue between the two sectors, but the situation of gender
equity in the private sector to some extent is better than the public sector. Discussion of
this continues in Chapter 9.
Trust: It is widely agreed that trust has an important effect in the organisation.
Overall, 27 per cent of respondents in the public sector trusted their managers in terms
of looking after their career interests, their organisation kept its promises or
commitments to them and they trusted people they work with to lend them a hand if
they need it. In contrast, the result indicates 34.8 per cent of respondents in the private
sector trusted positively (M=2.63, SD=.839). However, an independent samples t test
was conducted to compare the values between the two groups. There was a
statistically significant difference between the public sector (M=2.71, SD=.833) and
the private sector [M=2.58, SD=. 841; t (928) =2.209, p=0.027]. Table 7.33 presents
the descriptive statistics for trust in the public and private sectors.
Table 7.33: Trust Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Trust 99 27.0%
196 34.8% 2.63 .839 Yes
p< 0.05
184
However, the results do not coincide with findings such as Tanmia (2004) that
private sector managers, through past experience, do not trust UAE nationals employees
due to insufficient technical skills. Another study by Freek (2004) found that lack of
trust in the private sector predicates UAE nationals’ preference for the public sector. In
this study, the majority of respondents in the private sector were trusted by their
superiors and colleagues more so than respondents from the public sector. As
previously commented, generalisation of these findings are subject to further research
and study limitations. Further discussion is placed in Chapter 9.
Social justice: Table 7.34 presents the summary of the statistics of social justice
in the public and private sector.
Table 7.34 Social Justice Mean and Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Social Justice 37 10.1%
31 5.5% 3.32 .807 No
p>0.05
Results of this factor show that 10.1 per cent of respondents in the public sector
agreed that women are not sufficiently competitive to be successful in their
organisations; lack the ability to undertake management positions; and that women
should stay at home and devote their time to their children. However, in the private
sector, about one in every five (5.5 %) respondents reported the same result. Therefore,
the majority of employees (89.9% in the public and 94.4% in the private sector) think
women have capabilities and skills to compete and achieve higher managerial positions.
The difference in mean values between the two groups was tested by an independent
samples t test. There was no statistically significant difference between the public sector
(M=3.32, SD=0.807) and the private sector [M=3.27, SD=.842, t (928) = -.1.399,
p=0.162]. This result did not agree with previous studies such as Al-Lamki (1999), and
Baud and Mahgoub (2001) who found that the negative attitude and traditional
stereotype towards UAE females was an issue for professional women in their career
aspirations. From these findings, there is still a proportion of employees who harbour a
negative image of Emirati women’s career prospects and this is quite clearer in the
public sector, but this is not significant to women’s career prospects in specialised
fields. Discussion continues in Chapter 9.
185
Wasta: Table 7.35 presents the results for wasta and comparison between the
public and private sector.
Table 7.35: Wasta Mean, Standard Deviation, by Sector
Factor Sector Results Public Private Mean SD Difference
Wasta 164 44.7%
261 46.4% 2.41 1.064 No
p>0.05
Overall, 44.7 per cent of public sector respondents agreed that to find a good job,
personal or family connections are of more importance than meeting the job
specifications. However, employees in the private sector gave quite similar results (46.4
per cent). This reflects the importance of wasta and its role in finding a good job in both
sectors (M=2.41, SD=1.067). An independent samples t test was conducted to compare
the mean values between the sectors. There was no significant difference in values for
the public (M=2.44, SD=1.03) and the private sectors [M=2.44, SD=1.037; t
(928)=.504, p=0.614]. The results were supported by previous studies such as Whiteoak
et al. (2006), who found that the younger generation utilises wasta more so than the
older generation. This is a clear indication that young UAE nationals are willing to use
wasta in a competitive job market in both sectors, despite regulations and organisational
policies pertaining to equity and equal opportunity.
Summary: There are 5 variables of statistical significance implying a difference
between the sectors and relating to employees’ perceptions of factors impacting UAE’s
nationals’ workplace experiences. These variables are
1) Training and development
2) Career development
3) English fluency
4) Gender inequality
5) Trust.
Figure 7.4 illustrates means and standard deviation values of five variables that
result in a statistically significant difference between the public and private sectors, as
discussed above.
186
00.5
11.5
22.5
33.5
4
Professionaldevelopment
Careerdevelopment
English language Gender inequity Trust
Mean-Public SD-Public Mean-Private SD-Private
Figure 7.4 Significant Differences between Variables, by Sector
7.4 Conclusion
This chapter describes the analysis of the study’s quantitative research in terms
of the research question: identify the factors to enhance placement and retention of
UAE nationals in the Dubai workplace; establish whether these factors differ for
organisations in the public or private sectors.
Data were collected from seven organisations in Dubai, five from the private
sector and two from the public sector. The study used factor analysis to identify
variables that were relatively independent. A principle components analysis with
varimax rotation was used to determine the significance of items depicted as human,
organisational and social capital theory. Findings include the Kaiser-Meyer-Oklin
values of 0.87 for human capital elements, 0.925 for organisational capital and 0.785
for social capital, exceeding the recommended value of 0.6 (Kaiser 1970, 1974).
Further, Bartlett’s Test of Sphericity (Bartlett, 1954) reached statistical significant
(p<05), supporting the factorability of the correlation matrix. Human, organisational
and social capital theory components display coefficient alpha ranging from 0.705 to
0.893, with a strong reliability for the three dimensions.
Reliable and valid components were identified for each area of capital theory,
human, organisational and social. Five variables were found to have a statistically
significant difference between the sectors: training and development, career
development, English fluency, gender inequality and trust. All these variables were
identified as having a higher value in the private sector.
187
In the following chapter, 15 hypotheses are examined through different
statistical techniques such as Pearson’s correlation coefficient, an independent
samples t test, chi-square, Mann-Whitney U Test and Hierarchical Multiple
Regression.
188
Chapter 8
Data Analysis
Hypotheses Testing
Factor and descriptive analyses of survey data of Dubai Emiratis presented in
Chapter 7 produced five significant variables, training and development, career
development, English fluency, gender inequality and trust (see Section 7.4). The
variables were identified as part of the analysis to answer the following research
questions:
• Identify the factors to enhance placement and retention of UAE nationals in
Dubai workplaces
• Establish whether these factors differ for organisations in the public or private
sectors
• Explain variations in UAE nationals’ engagement with their organisations.
This chapter continues the data analysis with setting and testing 15 operational
hypotheses developed from the construct variables. The statistical methodology is
described for testing each of the first 11 hypotheses, and then the test results reported.
For the remaining four hypotheses, a series of hierarchical regression analyses is
conducted to examine the impact of two sets of variables, a social value construct and
organisational value construct, on organisational engagement, and on training and
development. The first two Hypotheses, H12 and H13, examine the impact of the social
and organisational constructs on both organisational engagement, and training and
development, in public sector organisations. Hypotheses H14 and H15 examine these
constructs on the same variables in private sector organisations.
The results by sector and by construct are reported and the hypotheses accepted or
rejected. Comparison is made between sectors in partial answer to the research
questions. Finally, the synopsis of all hypothesis testing is presented.
189
190
8.1 Hypotheses and Tests
A hypothesis seeks either to explain a phenomenon or a possible correlation
between multiple phenomena. Hypothesis testing is a commonly used inferential
procedure (Gravetter & Wallnau 2007). In this study, 15 hypotheses were established
(see Section 4.4) and tested through the statistical methods of non-parametric and
parametric techniques at two significant levels, α=0.05* (95% confidence level) and
α=0.01**2 (99% confidence level), using software SPSS. 15.0 for Windows. Thus 15
sets of hypotheses are tested as follows
• Pearson’s correlation coefficient (Hypotheses H1 & H2) to observe a
bivariate correlation to demonstrate the relationship between two variables.
• Independent sample t test (H3 & H4) to compare the mean score between
the public and private sectors.
• Chi-square test for independence (H5, H6, H7, H8, H9 & H10) to explore
the relationship between categorical variables in both the public and
private sectors.
• Mann-Whitney U Test (H11) to look at the differences between the public
and private sectors on a continuous measure.
• Hierarchical Multiple Regression (H12, H13, H14 & H15) to explore the
relationship between dependent variables (organisational engagement and
training &development) and eight independent variables (gender
inequality, trust, social justice, wasta (nepotism), organisational culture,
career development, remuneration and English fluency).
The 15 hypotheses statements, the statistical technique selected for each, its
application, test results and interpretations are discussed below.
8.1.1 H1 Test
Statistical technique: Parametric alternative: Pearson’s correlation coefficient
Hypothesis 1: There is a significant correlation between the human, organisational and social variables.
2 A single asterisk is used in this study to indicate α=0.05, a double asterisk for α =0.01
191
Results: Descriptive statistics include the mean, standard deviation, Cronbach’s
alpha and bivariate correlation matrix of the variables for Hypotheses H1, H2, H3,
H4, H5, H6, H7, H8, H9, H10 and H11. These results are presented at Table 8.1
below.
Table 8.1 H1: Matrix Comparison of Means, Standard Deviations, Reliabilities and Correlations for Variables for H1 – H11
* p< 0.05
Variables M SD Gender Age Job Title
Education Gender Inequal.
Trust Social Justice.
Wasta Org. Culture
Career Developt
Pay Eng. Fluency
Organ. Engagt.
Trng &. Dev’mt.
Gender 1.56 0.50 (-)
Age 2.01 0.99 -0.15** (-)
Job title 3.59 1.27 0.11**-
0.18** (-)
Education 4.73 1.47 0.02 0.26**-
0.30** (-)
Gender inequality 3.28 0.69 -0.10** 0.07* -0.08* 0.03
(.73)
Trust 2.64 0.84 0.11* 0.11** 0.05 0.06 -0.22** (.70)
Social justice 3.32 0.81 0.33** -0.05 0 0.03 0.33**-
0.09** (.66)
Wasta (nepotism) 2.42 1.07 0 0.01 -0.07* 0.09** 0.29**
-0.14** 0.19**
(.77)
Organisational culture 2.68 0.68 0.20** 0.04 0.09** 0.03 -0.30** 0.74** -0.08* -0.20**
(.90)
Career development 2.19 0.62 0.13** 0.03 0.17** -0.08** -0.20** 0.50** -0.01 -0.10** 0.54**
(.74)
Remuneration (pay) 3.19 1.00 0.10** 0.03 0.13** -0.04 -0.24** 0.54** -0.05 -0.17** 0.52** 0.36**
(.79)
English fluency 3.61 1.12 0.08* 0.04 -
0.15** 0.22** 0.11** 0 0.17** 0.12** 0.01 -0.08 -0.03 (.77)
Organisational engagement 2.81 0.68 0.15** -0.02 0.12** -0.02 -0.34** 0.65** -0.12** -0.29**
0.79** 0.48** 0.51** -0.03
(.77)
Training and development 2.41 0.88 0.12** 0.04 0.10** -0.03 -0.24** 0.49** -0.07* -0.15** 0.65** 0.47** 0.36** 0.00 0.54**
(.79)
** p< 0.01 Note. N=930. Cronbach’s alpha are given in parentheses on the diagonal
192
The majority of the results used in the study show good internal consistency. The
alpha for all scales variables exceed the critical value of 0.60 (Malhotra 1993);
moreover, with one exception (social justice α=0.66), all are above 0.70. A strong
reliability is thereby demonstrated with coefficient alpha ranging from 0.66 to 0.90.
Generally predictable relationships were found between all variables of human,
organisational and social capital. Interestingly, all variables from human capital were
significantly positively correlated with variables of organisation and social capital. For
instance, the results presented in Table 8.1 indicate a strong significant and positive
relationship between organisational engagement and organisational culture (r=0.79,
p<0.01), organisational culture and trust (r=0.74, p<0.01), organisational culture and
training and development (r=0.65, p<0.01), trust and organisational engagement
(r=0.65, p<0.01), remuneration and organisational engagement (r=0.51, p<0.01) and
remuneration and trust (r=0.54, p<0.01). However, a significant and negative
relationship was found between gender inequality and organisational engagement (r=-
0.34, p<0.01), wasta and organisational engagement (r=-0.29, p<0.01). The
correlations matrix in Table 8.1 also shows that the bivariate relationships between job
title and career development are unexpected (r=0.17, p<0.01), and job title is
significantly and negatively correlated with education (r=-0.30, p<0.01).
A weak and negative relationship was found between job title and wasta (r=-0.07,
p<0.05), social justice and training and development (r=-0.07, p<0.05), while no
substantial relationship was found between two of the control variables (age and
educational level) and dependent variables (organisational engagement and training and
development). The strongest significant correlation found was between organisational
culture and organisational engagement (r=0.79, p<0.01), while the weakest significant
correlation was found between social justice and training and development (r=-0.07,
p<0.05), job title and wasta (r=-0.07, p<0.05) and age and gender inequality (r=0.07,
p<0.05). Respondents’ contradictory views to the two independent variables could also
explain the low correlation between social justice and training and development. For
instance, training and development items were positively formalised, while social
justice items were negatively formalised and therefore the result was contrary to
expectations.
Conclusion: Hypothesis 1 is partially supported: there is a correlation between the
majority of variables of human, organisational and social capital.
193
8.1.2 H2 Test
Statistical technique: Parametric alternative: Pearson’s correlation coefficient
Hypothesis 2: There is a significant correlation between human, organisation and social constructs.
Results: Preliminary analyses were performed to ensure there was no violation
of the assumptions of normality, linearity and homoscedasticity (see Appendix 6). The
analysis is described in Table 8.2 below.
Table 8.2 H2: Capital Constructs, Mean, Standard Deviation, and Intercorrelation
Correlation of Capital Constructs
Mean SD Human Organisational Social
Human capital 2.71 .654 (1) Organisational capital 2.67 .557 .821(**) (1) Social capital 3.04 .478 -.154(**) -.035 (1)
** p<.01 (2-tailed) N=930. A significantly positive correlation was found in Table 8.2 between human and
organisational capital constructs (r=.821, p<.01). Wayne et al. (1999) similarly found
that employees with a high investment in human capital increased their productivity
and thereby gained further rewards. A weak negative correlation between human and
social capital constructs was found (r=-.154, p <.05). This is supported by Pennings et
al. (1998) who found weak correlation between human and social capital variables,
because the elements are embodied in the individuals who collectively own firms.
This suggests that regardless of the weak relationship, there is tangible evidence that
the variables of these two forms of capital enhance each other. In other words, a
nuturing working environment facilitates the development of human and social capital
dimensions, thus, individuals’ achievements are higher
Although the matrix correlation in Table 8.1 shows no relationship between
organisational and social capital constructs, the same table shows a strong relationship
between certain variables within organisational and social capital. For instance, there
is a strong positive correlation between organisational culture and trust (r=.736,
p<.01), career development and trust (r=.495, p<.01), remuneration and trust (r=.545,
p<.01), and a weak correlation between English fluency and social justice (r=.167,
p<.01). This suggests a high level of interaction between these organisational and
194
social capital elements, despite the lack of evidence in correlation testing. This
concurs with a study by Adel and Kwon (2002) who demonstrate that social capital
has a positive impact on human resource areas, such as remuneration, career
development and job search assistance, and on organisational areas, such as inter-unit
resource exchange, entrepreneurship, regional production network, supplier relations
and inter-company learning.
The weak correlation between organisational and social capital constructs in
this study may be attributed to the use of introduced variables, namely, gender
inequality and wasta, which were not considered in previous studies; consequently
this research obtained different results. Further, this research sampled UAE national
employees in their workplaces, whilst other studies samples were sourced from
different cultural and traditionalist environments and therefore findings are dissimilar.
Finally, the quantitative methodology differs markedly to other studies.
Conclusion: Hypothesis 2 is partially supported and there is a significant
correlation between human and organisational capital factors, a weak negative
correlation between human and social capital factors, and no correlation between the
elements of organisational and social capital.
8.1.3 H3 Test
Statistical technique: Parametric alternative: independent samples t test
Hypothesis 3: Between public and private sector organisations there are significant variance in the means of the following variables: organisational engagement, training and development, organisational culture, career development, remuneration, English fluency, gender inequality, trust, social justice and wasta.
Results: The result of independent sample t test indicated that the means of 5 only
of the 10 variables were statistically significant. These are described in Table 8.3 below.
195
Table 8.3 H3: Significant Means of Defined Variables, by Sector
Variables Sector Mean SD Levene's Test for Equality of Variances
t test for Equality of Means
F Sig. t df Sig. (2-tailed)
Mean Difference
Training and development
Public Private
2.52 2.33
.896
.861 2.797 .095 3.264 759.8
.001
.191
Career development
Public Private
2.27 2.12
.623
.617 .001 .979 3.661 776.9
.000
.152
English fluency Public Private
3.72 3.53
1.094 1.136
.393 .531 2.417 802.9
.016
.181
Gender inequality
Public Private
3.35 3.22
.665
.704 1.222 .269 2.699 813.6
.007
.124
Trust Public Private
2.71 2.58
.833
.841 .020 .887 2.209 787.6
.027
.124
The 5 variables found to be significant were: training and development (M=2.52,
SD=.89), (M=2.33, SD=.86), career development (M=2.27, SD=.62), (M=2.12,
SD=.61), English fluency (M=3.72, SD=1.09), (M=3.53, SD=1.13), gender inequality
(M=3.35, SD= 66), (M=3.22, SD=.704), and trust (M=2.71, SD=.83), (M=2.58,
SD=.84).
Those variables under H3 that did not exhibit significant values are included at
Table 8.4 below.
Table 8.4 H3: Nonsignificant Defined Variables, by Sector
Variables Sector Mean SD Levene's Test for Equality of Variances
t test for Equality of Means
F Sig. t df Sig. (2-tailed)
Mean Difference
Organisation engagement
Public Private
2.83 2.79
.669 .685 .106 .745 .892 795.0 .373 .040
Organisational culture
Public Private
2.70 2.65
.658 .698 .384 .536 1.222 814.2 .222 .056
Remuneration Public Private
3.17 3.19
.933 1.046 11.958 .001 -.205 842.5 .837 -.013
Social justice Public Private
3.27 3.34
.842 .783 3.533 .060 -1.399 742.0 .162 -.075
Wasta Public Private
2.44 2.40
1.03 1.08 .445 .505 .504 808.4 .614 .036
Effect size statistics indicate the magnitude of the differences between the public
and private sectors. However, there was no significant difference in mean scores
between organisational engagement (public sector M=2.83, SD=.66), (private sector
196
M=2.79, SD=.68), organisational culture (public sector M=2.70, SD=.65), (private
sector M=2.65, SD=.69), remuneration (public sector M=3.17, SD=.933), (private
sector M=3.19, SD=1.04), social justice (public sector M=3.27, SD=.84), (private
sector M=3.34, SD=.78), and wasta (public sector M=2.44, SD=1.03), (private sector
M=2.40, SD=1.08).
There are a number of effect size statistical techniques. For the purpose of this
study Cohen’s d was used. This technique produces a standardised measure of mean
difference and has a range between 0 - 1. To interpret this value, guidelines Cohen
(1988) employed were adopted: .01=small effect, .06=moderate effect and .14=large
effect. The magnitude of the difference in the sector means between training and
development (d=0.001), organisational culture (d=0.001), career development
(d=0.014), English fluency (d=0.006), gender inequality (d=0.007), trust (d=0.005), and
social justice (d=0.002) were very small. Dewberry (2004) states that with a very large
sample it is possible to obtain a statistically significant result even if the effect size is
very small.
Conclusion: Hypothesis 3 is partially supported, and there is a significant
variance in mean values between training and development, career development,
English fluency, gender inequality, and trust.
8.1.4 H4 Test
Statistical technique: Parametric alternative: independent sample t test
Hypothesis 4: There are significant variances in the means between three sets of constructs, namely human, organisational and social capital, in organisations from each business sector.
Results: The results of the independent sample t test are shown at Table 8.5
below.
197
Table 8.5 H4: Capital Constructs, by Sector: Comparison of Means
Capital Construct Mean SD Levene's Test for Equality of Variances
t test for Equality of Means
F Sig. t df Sig. (2-
tailed)
Mean Difference
Human Public Private
2.76 2.68
.645
.658 .010 .920 1.788 928 .074 .078 .043
Organisational Public Private
2.72 2.64
.532
.571 .875 .350 2.211 928 .027 .082 .037
Social Public Private
3.07 3.01
.465
.486 .748 .387 1.690 928 .091 .054 .032
The t test showed a significant difference in the means for the organisational
capital construct in the public sector (M=2.72, SD=.532) and the private sector
[M=2.64, SD=.572; t (928)=2.211, p=.027]. However, there was no significant
difference in mean values for the human capital construct between the public sector
(M=2.76, SD=.645) and private sector [M=2.68, SD=.658; t (928)=1.178, p=.074].
Furthermore, no significant difference was found in the social capital set between the
public sector (M=3.07, SD=.465) and the private sector [M=3.01, SD=.486; t
(928)=1.680, p=.091].
Conclusion: Hypothesis 4 is partially supported, with the conclusion that there is
a significant variance in the means between sectors for the organisational capital
construct.
8.1.5 H5 Test
Statistical technique: Non-parametric technique: chi-square for independence
Hypothesis 5: Human, organisational and social capital constructs for public and private sectors are independent.
Results: Table 8.6 shows the results of Pearson’s chi-square test.
198
199
Table 8.6 H5: Capital Constructs Tests, Chi-square Values, Degrees of Freedom and
Difference in Proportions
Capital Constructs Both Sectors
Pearson’s Chi-Square Value 2χ
Degrees of freedom
Asymp. Sig. (2-sided)
Human 61.95 45 .047 Organisational 82.96 83 .480 Social 54.74 48 .234
Results of the chi-square tests at Table 8.6 show a significant difference in terms
of human capital constructs in both sectors, (45, N=930)=61.954, p= 047 <.05.
However, the difference between the organisational capital construct, (83,
N=930)=82.96, p=.480, and social capital construct (48, N=930)=54.746, p=.234
were not statistically significant.
2χ
2χ
2χ
Conclusion: Hypothesis 5 is partially supported, and the findings are that human
capital constructs in the public and private sectors are independent of each other.
8.1.6 H6 Test
Statistical technique: Non-parametric technique: chi-square for independence
Hypothesis 6: The UAE national population differs between those in the public and private sectors in terms of educational attainment.
Results: Table 8.7 displays the results of the H6 test.
Table 8.7 H6: Educational Attainment, by Sector: Chi-square Values, Degrees of Freedom and Difference in Proportions
Variable 2χ Value Degrees of Freedom Asymp. Sig. (2-sided)
Education level 41.74 1 .000
The variable education was found to have statistically significant differences
between the public and private sectors: (1, N=930)=41.74, p=.000 <.05 (see Table
8.7). Overall, results indicated that 34.6 per cent of respondents in the public sector
had either graduated from secondary school or held a diploma, whereas the figure for
the private sector was 56.4 per cent. Moreover, 65.4 per cent of participants in the
public sector had a higher diploma and above, while the percentage for the private
2χ
200
sector was 43.5. The results lead to the conclusion that the majority of positions in the
private sector are in the low administrative categories, while the higher-level
opportunities for positions for UAE nationals are in the public sector. This result is
supported by Freek (2004) who found the majority of UAE nationals who were
working in the private sector had a clerical or administrative position.
Conclusion: Hypothesis 6 is supported: there is a statistically significant
difference between populations in the public and private sectors in terms of
educational levels.
8.1.7 H7 Test
Statistical technique: Non-parametric technique: chi-square for independence
Hypothesis 7: In terms of job title, there is difference between the populations of UAE nationals in the public and private sectors.
Results: The results for the chi-square test for H7 are shown at Table 8.8 below.
Table 8.8 H7: Job Title by Sector: Chi-square value, Degrees of Freedom and Difference in Proportions
Variable 2χ Value Degrees of freedom Asymp. Sig. (2-sided)
Job title 14.92 1 .000
The result of the chi-square test at Table 8.8 shows that 64.6 per cent of Emirati
employees in the public sector occupied a managerial position, and 35.4 per cent held
administrative positions. In comparison, 51.5 per cent of respondents in the private
sector were managers and 48.5 per cent were in administration. To test for difference,
the chi-square test displayed statistically significant differences between the sectors:
(1, N=930)=14.92, p=.000<.05. As noted earlier in this section, it is clear that
UAE national employees obtained better positions in the public sector, executive and
supervisory management. The private sector employs UAE nationals in less senior
positions. This result is consistent with findings by others such as Al-Lamki (1998),
Freek (2004) and Tanmia (2004).
2χ
Conclusion: Hypothesis 7 is supported: there is a statistically significant
difference between Emiratis in the public and private sectors in terms of job title.
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8.1.8 H8 Test
Statistical technique: Non-parametric technique: chi-square for independence
Hypothesis 8: There is a significant difference in years of experience between UAE nationals in the two sectors.
Results: The test results for H8 are shown at Table 8.9 below.
Table 8.9 H8: Years of Work Experience, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions
Variable 2χ Value Degrees of freedom Asymp. Sig. (2-sided)
Experience 57.37 1 .000
Years of work experience was found to yield statistically significant differences
between the public and private sector populations: (1, N=930)=57.37, p=.000<.05
Table 8.9 results show that 64 per cent of Emirati employees in the public sector had
work experience less than 10 years and 30 per cent 10 years or above. However, over
three quarters (85.6%) of the respondents in the private sector had less than 10 years
work experience, thus 14.4 per cent had 10 years or more. Work experience is an
important factor in recruiting for both sectors; significantly, an individual’s relevant
work experience is a competitive advantage in the private sector. Clearly, private
sector employers are not interested in UAE nationals who lack the experience and
skills that the market requires. The results agree with prior studies such as Tanmia
(2004) and Freek (2004), who found that UAE nationals not only lack relevant skills
and knowledge for a particular job, but exhibit imperfect knowledge of workplace
environments in general.
2χ
Conclusion: Hypothesis 8 is supported: there is a statistically significant
difference between Emirati employees in the public and private sector in terms of
work experience.
8.1.9 H9 Test
Statistical technique: Non-parametric technique: chi-square for independence.
Hypothesis 9: There is a significant difference in age between UAE nationals in the two sectors
Result: The age profiles for Emirati employees in both sectors were tested and
the results are presented in Table 8.10 below.
202
Table 8.10 H9: Ages of Population, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions
Variable 2χ Value Degrees of freedom Asymp. Sig. (2-sided)
Age 78.94 1 .000
The results of the chi-square test show age was a statistically significant
difference between the sectors, (1, N=930)=78.94, p=.000<.05. Table 8.10
illustrates results that 51.2 per cent of respondents in the public sector were aged
below 30 years and 48.8 per cent of respondents were 30 years and above. On the
other hand, 79.2 per cent of respondents in the private sector were aged below 30
years, with 20.8 per cent aged 30 years and above. This suggests that the majority of
younger UAE nationals now find jobs in the private sector. Further, the majority of
recent UAE entrants to the workforce graduated from private tertiary institutions
based on current best-practice curricula models. Whilst there is more of an
equilibrium between numbers of Emirati managers and administrative job-holders in
the private sector, the youth factor suggests that private tertiary institutions produce
graduates who are work-ready.
2χ
Conclusion: Hypothesis 9 is supported. The age variation is a statistically
significant difference between UAE nationals in the public and private sectors.
8.1.10 H10 Test
Statistical technique: Non-parametric technique: chi-square for independence
Hypothesis 10: There is a significant difference in gender between UAE nationals in the two sectors
Results: Table 8.11 shows the results of the chi-square test.
Table 8.11 H10: Gender of Population, by Sector, Chi-square Value, Degrees of Freedom and Difference in Proportions
Variables 2χ Value Degrees of freedom Asymp. Sig. (2-sided)
Gender .041 1 .837
The chi-square test showed that gender was not statistically significant between
the sectors; (1, N=930)=.041, p=.837>.05. In general, results from Table 8.11 2χ
were that 45 per cent of respondents in the public sector were male and 55 per cent
female, while 44 per cent of respondents in the private sector were male and 56 per
cent were female. Thus, no difference was found in gender between sectors, with no
indication of gender preference for either sector.
Conclusion: Hypothesis 10 is rejected. No gender preference was found for
either sector.
8.1.11 H11 Test
Statistical technique: Non-parametric technique: Mann-Whitney U Test of
independence
Hypothesis 11: Educational attainment is of greater significance in public sector organisations.
Results: The results for the Mann-Whitney U Test for independence are
presented below in two tables: Table 8.12 H11: Mann-Whitney U Test of Education,
by Sector, and Table 8.13 H11: Statistics of Mann-Whitney U Test of Education.
Table 8.12H11: Mann-Whitney U Test of Education, by Sector
Sector N Mean Rank
Sum of Ranks
Public sector 367 533.10 195647.00Private sector 563 421.44 237268.00Total 930
Table 8.13 H11: Statistics of Mann-Whitney U Test of Education
Test Education Mann-Whitney U Wilcoxon W Z Asymp. Sig. (2-tailed)
78502.000237268.000
-6.905.000
The results of the Mann Whitney U tests revealed significant differences
between the public sector organisations (Md=2, n=367) and their private sector
counterparts (Md=1, n=563), U= 78502, z=-6.90, p=.000, r =.22.
Conclusion: Hypothesis 11 is supported; education level shows a statistically
significant difference between sectors.
In the following section, hierarchical regression analysis based on four
hypotheses is tested, and the impact of two sets of variables discussed: social and
203
organisational values on dependent variables, organisational engagement, and training
and development.
8.2 Hierarchical Regression Analysis
Four sets of Hypotheses, H12, H13, H14 and H15 are tested herein. To test these
hypotheses, hierarchical regression analysis is conducted to examine the impact of
two sets of variables, social value and organisational value on organisational
engagement and training and development. The first two Hypotheses, H12 and H13,
examine the impact of two sets of variables, social value and organisational value on
both organisational engagement and training and development in public sector
organisations. Hypotheses H14 and H15 examine the impact of two sets of variables,
social value and organisational value on organisational engagement and training and
development in private sector organisations. A possible analysis combining the public
and private sector results was not contemplated, as the purpose of this study is to
identify variables that improve performance for UAE nationals within each sector. If
the dataset was combined, identification of key sector variables would be negated.
Therefore, two samples are used in this study. The first sample encompasses two
public sector organisations (N=367), and the second sample comprises five private
sector organisations (N=562). After controlling for the demographic set of variables,
analysis was performed using SPSS 15. In this analysis, there were two dependent
variables: organisational engagement, and training and development. A key process in
this analysis wais to examine the change in the semi-partial correlation (sr) of the
independent variables.
Assessment of residual scatter-plots provides a test of assumptions of normality,
linearity and homoscedasticity between predicted dependent variable values and
errors of prediction (see Appendix 6). The results led to transformation of the
variables to reduce skewness, reduce the number of outliers and improve the
normality. The highest tolerance value for significant variables was age (.78) in the
public sector, while wasta was the highest tolerance (.86) in the private sector
organisations (see Tables 8.20 and 8.35). According to Hair et al. (2006) the presence
of high correlations (generally .90 and higher) is the first indication of substantial
collinearity. In this study the highest correlations are trust and organisational culture
(.79) and organisational culture and organisational engagement (.75) in the public
204
sector sample (see Table 8.14). The values of the variance inflation factor were well
below the cut-off of 10, indicating a complete lack of multicollinearity as
recommended by Hair et al. (2006) and Tabachnick and Fidell (2007). These are
further discussed in Section 8.3.1 and Section 8.4.1, public and private sectors,
respectively.
Part correlation [semi-partial correlation (sr)] is used in this study to express the
specific portion of variance explained by a given independent variable. Part
correlation is different from partial correlation. According to Tabachnick and Fidell
(2007, p.145) in a partial correlation
the contribution of the other independent variables is taken out of both the independent variable and the dependent variable. In a part correlation [semi-partial correlation (sr)], the contribution of other independent variables is taken out of only the independent variable. Thus, squared semi-partial correlation (sr) expresses the unique contribution of the independent variable to the total variance of the dependent variable.
For this reason part correlation is used extensively in this analysis. In the
hierarchical regression, it determines which independent variables explain the effect
of unique variance at each step.
There were three sets of variables entered into the hierarchical regression
program. The first set, the respondents’ demographic variables (gender, age, job title
and education), acted as control variables. In the second step of the hierarchical
regression analysis, the social value variable (trust, gender inequality, social justice
and wasta) were entered. In the third step of the regression analysis, the organisation
value variables (organisational culture, career development, remuneration and English
fluency) were added into the equation. However, the researcher used a dummy variable
was included in Step 1 of the hierarchical regression analysis for both the public and private
sector, and there was no difference in the overall result (see appendix 8). In addition, firm
size was not considered for both sectors, and this remains a possible area for
investigation in future studies
8.3 Public Sector Analysis
In the following section, the three-stage hierarchical regression analysis is
separately examined to test the H12 and H13. The section begins with specifying the
selection of the independent and dependent variables. It examines the role played by
each independent variable in the prediction of the dependent measure. In addition,
205
206
the degree and character of the relationship between dependent and independent
variables is assessed by forming the variate of independent variables and then
examining the magnitude, sign, and statistical significance of the regression
coefficient in three stages for each independent variable. As mentioned above,
demographic variables are the first variables to enter, followed by social then
organisational variables. The first two H12 and H13 are tested as follows:
Hypothesis (H12): After controlling for the demographic set of variables (gender, age, job title, and education) in public sector organisations, then for the social value set of variables [trust, gender inequality, social justice, and wasta (nepotism)], and the organisational value set of variables (organisational culture, career development, remuneration and English fluency, the unique variance in the human capital variable of organisational engagement is explained.
Hypothesis (H13): After controlling for the demographic set of variables (gender, age, job title, and education) in public sector organisations, then for the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) the unique variance in the human capital variable of training and development is explained.
Variables from both the social and the organisational value variable set were
expected to explain unique variance in the two dependent variables (organisational
engagement and training and development) that comprised the human capital construct
after controlling for. Hierarchical regression of these variables are discussed in the next
section.
Table 8.14 presents descriptive statistics including mean, standard deviations,
Cronbach’s alpha, and bivariate correlation matrix of the variables for both
Hypotheses (H12 and H13) included in the analysis.
Table 8.14: H12, H13: Matrix Comparison of Descriptive Analyses for Variables for all Public Sector Constructs
* p< 0.05, **p< 0.01
Variable M SD Gender Age Job Title
Education Gender Ineq.
Trust Social Justice
Wasta Org. Culture
CareerDevelop
Pay Eng.Fluency
Organ. Engagt
Trng &. Dev’mt.
Gender 1.55 0.50 (-)
Age 2.40 1.05
-.308**
(-)
Job title 3.47 1.18
.09
-.23** (-)
Education 5.14 1.45
.00
.20** -.52**
(-)
Gender inequality 3.35 0.67
-.08
.07
-.06
.02
(.71)
Trust 2.71 0.83
.04
.21**
.06
.01
-.23**
(.72)
Social justice 3.27 0.84
.39**
-.08
.05
.00
.27**
-.05
(.70)
Wasta (nepotism) 2.44 1.04
-.02
.11*
-.08
.12* .29** -.11*
.15** (.78)
Organisational culture 2.71 0.66
.15**
.11*
.02
.07
-.28**
.79**
-.06
-.21**
(.89)
Career development 2.28 0.62
.11*
-.03
.30**
-.14**
-.27**
.45**
.01
-.14**
.50**
(.68)
Remuneration 3.18 0.93
-.01
.10
.10
-.07
-.24**
.49**
-.03
-.16**
.46**
.42**
(.78)
English fluency 3.72 1.09
.16**
.00
-.17** .21**
.14**
-.02
.20**
.15**
.02
-.11*
-.05
(.78)
Organisational engagement 2.84 0.67
.11*
-.02
.11*
-.03
-.38**
.62**
-.09
-.27**
.75**
.50**
.42**
-.07
(.79)
Training and development 2.52 0.90
.04
-.01
.11*
-.03
-.27**
.47**
-.03
-.20**
.62**
.41**
.32**
-.00
.51**
(.78)
Note. N=367. Cronbach’s alpha are given in parentheses along the diagonal
207
The majority of the values exhibited in Table 8.14 (N=367) show good internal
consistency. The alpha for all variables exceeds the critical value of 0.60 (Malhotra
1993); with the exception of career development (alpha=0.68), all alpha are above 0.70.
Overall, a strong reliability is demonstrated with coefficient alpha ranging from 0.68 to
0.89.
There is a significant and positive relationship between trust and organisational
culture (r=0.79, p<0.01), organisational culture and career development (r=0.50,
p<0.01), organisational culture and organisational engagement (r=0.75, p<0.01),
organisational culture and training and development (r=0.62, p<0.01), career
development and organisational engagement (r=0.50, p<0.01) and organisational
engagement and training and development (r=0.51, p<0.01). However, a significant and
negative relationship was found between job title and education (r=-0.52, p<0.01). Job
title is positively connected with career development, which is in the expected direction
(r=0.30, p<0.01), but negatively correlated with education (r=-0.52, p<0.01). A weak
relationship was found between job title and training and development (r=0.11, p<0.05)
while no substantial relationship was found between the control variables and dependent
variable (training and development).
Of the social value variables, trust (r=-0.23, p<0.01), social justice (r=0.26, p<0.01),
wasta (r=0.29, p<0.01); of the organisational value variables, organisational
culture(r=-0.27, p<0.01), career development (r=0.27, p<0.01), remuneration
(r=0.23, p<0.01) English fluency (r=0.13, p<0.01) organisational engagement
(r=0.37, p<0.01); and of the human value variable, training and development (r=0.27,
p<0.01) were significantly related to gender inequality. This suggests that trust plays
a significant role in the organisation. The strongest significant correlation found was
between organisational culture and organisational engagement (r=0.75, p<0.01),
while the weakest significant correlation was found between trust and wasta (r=-0.10,
p<0.05).
8.3.1 H12 Independent Variable Organisational Engagement
In the following section, the three-stage hierarchical regression analysis to test
the H12 is demonstrated. Semi-partial (sr) correlation is used at each step to identify
the extent of unique variance explained by independent variables. A diagram
208
illustrates the significant variables and variation in the dependent variable account at
that particular stage of the hierarchical regression analysis.
Step 1 Demographic Variables on Organisational Engagement: In the first step
(Model 1), demographic variables (age, education, job title and gender) were entered
into the hierarchical regression and acted as controls, as shown in Figure 8.1.
R2=.026 * % explained variance for dependent variable Note. Significant variables in bold.
Figure 8.1: Public Sector Model 1 Hierarchical Regression, Independent variables (demographic variables) on dependent variable (organisational engagement).
At Table 8.15 Public Sector Model 1 Statistical Summary of Organisational
Engagement, the multiple R (.161) was found to be statistically significant, R2 =.026,
F (4, 362)=2.42, p<.05.
Table 8.15: Public Sector Model 1 Statistical Summary of Organisational Engagement
Model R R Square
Adjusted R Square
F Std. Error of the Estimate
Sig
1 .161 .026 .015 2.42 .66444 .048
In total, 2.6 per cent (1.5 % adjusted) of the variation in organisational
engagement was accounted for by the set of demographic variables.
Table 8.16: Public Sector Model 1 Coefficient Regression, Organisational Engagement
Model Unstandardised
Coefficients Standardised Coefficients t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 2.239 .275 8.131 .000 Gender .155 .074 .116 2.113 .035 .115 .110 .110 Age .024 .036 .037 .658 .511 -.022 .035 .034 Job title .071 .035 .125 2.029 .043 .114 .106 .105 Education level .011 .028 .023 .383 .702 -.034 .020 .020
Demographic variables
Social value variables Organisational valuevariables
1. Gender 2. Age 3. Job title 4. Education level
1. Gender inequality 2. Trust 3. Social justice 4. Wasta (nepotism)
1. Organisational culture 2. Career development 3. Remuneration 4. English fluency
Organisational engagement
Human value variable 2.6%*
209
Table 8.16 indicates that the standardised regression coefficient (β) for the two
control variables gender (β=.116, p<.05) and job title (β=.125, p<.05) were
significant. Of the 2.6 per cent explained variance, the squared semi-partial
correlations (sr2) show in the ‘part’ column of Table 8.16 that gender explained 1.2
per cent (sr2=.1102) and job title explained 1.1 per cent (sr2=.1052) of this variance,
when all other variables in the equation were controlled. Of the two demographic
variables, gender explained greater unique variance in organisational engagement in
public sector organisations. In step 1, age and education level did not significantly
explain any additional unique variation. As indicated in Figure 8.1, only gender and
job title of the demographic value variables were significant.
Step 2 Demographic and Social Value Variables for Organisational
Engagement: In the second step (Model 2), social value variables were entered after
the demographic variables into the hierarchical regression as shown in Figure 8.2.
ΔR2=.448
+ 2.6% * % explained variance in dependent variable Note. Significant variables in bold. Figure 8.2: Public Sector Models 1 & 2 Hierarchical Regression, Independent Variables (Social Value Variables) on Dependent Variable (Organisational Engagement).
The introduction of the social variables (gender inequality, trust, social justice
and wasta) caused R2 to change from .026 in model 1 to .474 in model 2, see Table
8.17 Public Sector Models 1 & 2, Statistical Summary of Organisational Engagement
Table 8.17: Public Sector Models 1 & 2, Statistical Summary of Organisational Engagement Model R R
Square Adjusted R
Square F Std. Error of the Estimate Sig
1 .161 .026 .015 2.416 .66444 .048 2 .688 .474 .462 40.307 .49106 .000
Demographic variables
Social value variables Organisational value variables
1. Gender inequality 2. Trust 3. Social justice 4. Wasta (Nepotism)
1. Organisational culture 2. Career development 3. Compensation system 4. English fluency
Organisational
engagement
Human value Variable
47.4%*
1. Gender 2. Age 3. Job tile 4. Education level
210
Table 8.17 shows a significant change in R2 (ΔR2=.448, p<0.001). The multiple
R (.688) was statistically significant, R2= 474, F (4, 358)=40.307, p<.001. In total,
44.8 per cent (46.2% adjusted) of the variation in organisational engagement was
accounted for by the set of social value variables, in addition to the 2.6 per cent
variance by the demographic set of variables grouping; in total of 47.4 per cent of
variance.
Table 8.18: Public Sector Model 2: Coefficient Regression. Organisational Engagement
Model 2 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order Parti
al part
(Constant) 2.379 .263 9.05 .000 Gender .070 .060 .052 1.15 .248 .115 .061 .044 Age -.061 .028 -.095 -2.19 .029 -.022 -.115 -.084 Job title .023 .026 .040 .88 .378 .114 .047 .034 Education level .010 .021 .021 .45 .649 -.034 .024 .017 Gender inequality -.179 .043 -.178 -4.12 .000 -.373 -.213 -.158
Trust .462 .033 .575 14.05 .000 .618 .595 .537 Social justice -.020 .035 -.025 -.56 .571 -.095 -.030 -.022 Wasta -.090 .026 -.140 -3.42 .001 -.269 -.178 -.131
Table 8.18 shows that the standardised regression coefficient (β) for one
demographic variable, age (β=-.095, p<.05), and three social value variables: gender
inequality (β=-.178, p<.001), trust (β=.575, p<.001), and wasta (β=-.140, p<.001),
were significant. Of the 47.4 per cent explained variance, the squared semi-partial
correlations (sr2) show in ‘part’ of Table 8.18 column that the majority of dominant
variables in terms of unique variance is explained [where age is 0.7 per cent (sr2=-
.0842); gender inequality is 2.5 per cent (sr2=-.1582); trust is 29 per cent (sr2=.5372);
and wasta is 1.7 per cent (sr2=-.1312)] when all variables in the equation were
controlled for.
However, the pattern of significance for the demographic variables has changed.
In step 1 (model 1), both gender and job title were significant; however they became
insignificant in step 2 (model 2). This was reflected in their respective semi-partial
correlations (sr2). Gender has changed from a significant 1.2 per cent (sr2=.1102) in
step 1 to an insignificant 0.2 per cent (sr2=.0442) in step 2; and job title from a
significant 1.1 per cent (sr2=.1052) in step 1 to an insignificant 0.15 per cent
(sr2=.0342) in step 2. That means gender and job title in step 2 explained an
insignificant amount of unique variance (total 0.35%) of the total 47.4 per cent
211
explained variance in organisational engagement in the public sector organisations.
Age, which was insignificant in step 1, became significant in step 2 (β=-.095, p<.05),
moving from an insignificant 0.1 per cent (sr2 =.0342) to significant 1 per cent (sr2=-
.0842) of variation when the four demographic value variables (gender, age, job title
and education level) and four social value variables (gender inequality, trust, social
justice and wasta) were controlled for. Trust, gender inequality, wasta and age were
significant predictors and explained unique variation in organisational engagement in
public sector organisations. Of these, trust explains the greatest unique variance in
organisational engagement, followed by age, wasta and gender inequality. In step 2,
gender, job title, education level and social justice did not significantly explain any
additional unique variation.
Public Sector Model 3 Demographic, Social and Organisational Value
Variables on Organisational Engagement: In the third step (Model 3), organisational
value variables were added, after controlling for demographic and social value
variables in the hierarchical regression as shown in Figure 8.3.
ΔR2=.162
+ + 2.6% 47.4%
Demographic variables
Social value variables Organisational value variables
1. Organisational culture 2. Career development 3. Compensation system 4. English fluency
Personal value Variable
63.6%*
Organisational
engagement
1. Gender inequality 2. Trust 3. Social justice 4. Wasta (Nepotism)
1. Gender 2. Age 3. Job tile 4. Education level
* % explained variance in dependent variable Note. Significant variables in bold, Figure 8.3: Public Sector Models 1, 2 & 3, Hierarchical Regression, Independent Variables (Organisational Value Variables) on Dependent Variable (Organisational Engagement)
Table 8.19: Public Sector, Models 1, 2, & 3 Organisational Engagement Summary
Model R
R Square
Adjusted R Square
F Std. Error of the Estimate
Sig
1 .161 .026 .015 2.416 .66444 .048 2 .688 .474 .462 40.307 .49106 .000 3 .798 .636 .624 51.61 .41059 .000
The introduction of the organisational set of variables (organisational culture,
career development, remuneration and English fluency) caused R2 to change from
.474 in model 2 to .636 in model 3, as depicted in Table 8.19. This was a significant
212
change in R2 (ΔR2=.162, p<0.001). The multiple R (.798) was statistically significant,
R2=.636, F (4, 354)=51.609, p<.001.
In total, 16.2 per cent (62.4% adjusted) variation in organisational engagement
was accounted for by the set of organisational value variables after the 2.6 per cent
variance explained by the demographic set of variables, and the 47.4 per cent variance
explained by organisational set of variables were accounted for. In total of 63.6 per
cent of variance was explained.
Table 8.20: Public Sector Coefficient Regression: Organisational Engagement
Model 3 Unstandardised
Coefficients Standardised Coefficients t Sig
Correlations
b SE β Zero-order
Partial
part T VIF
(Constant) 1.519 .241 6.29 .000 Gender -.033 .052 -.025 -.63 .523 .115 -.034 -.020 0.70 1.44Age -.063 .023 -.100 -2.74 .006 -.022 -.145 -.088 0.78 1.28Job title .012 .023 .021 .53 .591 .114 .029 .017 0.65 1.54Education level -.005 .018 -.011 -.29 .768 -.034 -.016 -.009 0.69 1.44Gender inequality -.125 .037 -.124 -3.37 .001 -.373 -.176 -.108 0.76 1.32Trust .112 .040 .139 2.80 .005 .618 .147 .090 0.42 2.40Social justice -.001 .030 -.001 -.03 .971 -.095 -.002 -.001 0.73 1.37Wasta -.043 .022 -.066 -1.89 .059 -.269 -.100 -.061 0.85 1.18Organisational culture .582 .053 .573 11.06 .000 .755 .507 .355 0.38 2.61Career development .093 .044 .087 2.10 .036 .497 .111 .067 0.61 1.65Remuneration .009 .028 .012 .32 .750 .418 .017 .010 0.68 1.47English Fluency -.023 .021 -.038 -1.10 .268 -.075 -.059 -.036 0.87 1.15
Table 8.20 shows evidence that the standardised regression coefficient (β) for
one demographic variable, age (β= -.100, p<.001), two social value variables [gender
inequality (β= -.124, p<.001) and trust (β=.139, p<.001)] and two organisational
value variables [organisational culture (β=.573, p<.001) and career development
(β=.087, p<.05)] were significant.
Multicollinearity indicates a high degree of linear correlation amongst two or
more independent variables, making it difficult to separate their effects on the
dependent variable. Tolerance values close to 1.0 indicate a lack of multicollinearity,
thus each independent variable’s effects on the dependent variable is assumed to be
singular (Hair et al. 2006). The tolerance values for three independent variables
shown in Table 8.20 are above .50: age (.78), gender inequality (.76), career
development (.61); and less than .50 for two independent variables: trust (.42) and
organisational culture (.38). The tolerance values are thus less indicative of
multicollinearity. However, Table 8.20 also shows that all five independent variables
213
are significantly contributing to the dependent variable (organisational engagement).
Hence, the model is finalised.
Of the 63.6 per cent explained variance, the squared semi-partial correlations
(sr2) shown in the part of column of Table 8.20 show that the important variables in
terms of unique variance explained, were organisational culture 12.6 per cent
(sr2=.3552), gender inequality 1.2 per cent (sr2=-.1082), trust 0.8 per cent (sr2=.0902),
age explained 0.8 per cent (sr2=-.0882), and career development explained 0.4 per
cent (sr2=.0672) of variance, when all variables in the equation were controlled.
The pattern of significance for the social value variables changed. In step 2
(model 2), wasta was significant; however, it became insignificant in step 3 when
controlled by the organisational additional set of variables. Wasta, which explained
1.7 per cent (sr2=-.1312) of the total 47.4 per cent variance by the end of step 2, now
explains 0.4 per cent (sr2=-.0612) of the total 63.6 per cent variation by the end of
step 3. With regard to the part correlations (Table 8.20) for all variables,
organisational culture has the highest part correlation (.355), which is also
statistically significant at the .000 level. This variable explains 12.6 per cent of the
total variance. Overall, the results show that organisational culture, trust, gender
inequality, age and career development are significant predictors of organisational
engagement and explain unique variations in organisational engagement in public
sector organisations. Increase in any of these five variables results in increase in
organisational engagement. In step 3, gender, job title, education level, social justice,
remuneration and English fluency did not significantly explain any additional unique
variation.
Summary: The multiple R (.798) was statistically significant after step 3, with
all independent variables in the equation, R2=.636, F(4, 354)=51.61, p<.001. In step 1,
age and job title explain statistically significant unique variation in organisational
engagement in public sector organisations. The addition of the social value variables
in step 2 produced a significant change in R2 (ΔR2=.448, p<0.001). Gender inequality,
trust, wasta and age explain significant unique variations. In the final step, the
introduction of organisational value variables caused a significant increase in R2
(ΔR2=.162, p<0.001). The final results of this 3-step hierarchical regression analysis
were that, organisational culture, trust, gender inequality, age and career development
214
215
explained unique variation in the organisational engagement (see Table 8.21) after the
other variables were controlled for.
Table 8.21: Public Sector, Hierarchical Regression Analysis for Organisation
Engagement * p< .05. ** p< .001. Note: For organisational engagement, final model, F(4, 354)=51.609, p<.001, and total R2
=.636. B = unstandardised regression coefficients. β = standardised coefficients, .SE= standard error of B, ΔR2 = change in R square, significant variables in bold in step 3.
Methodology Organisational Engagement
B SE β ΔR2
Step 1 0.26* Gender 0.16 0.07 0.12* Age 0.02 0.04 0.04 Job title 0.07 0.03 0.12* Education level 0.01 0.03 0.02
Step 2 0.448** Gender 0.07 0.06 0.05 Age -0.06 0.03 -0.10* Job title 0.02 0.03 0.04 Education level 0.01 0.02 0.02 Gender inequality -0.18 0.04 -0.18** Trust 0.46 0.03 0.58** Social justice -0.02 0.04 -0.03 Wasta -0.09 0.03 -0.14**
Step 3 0.162** Gender -0.03 0.05 -0.02 Age -0.06 0.02 -0.10** Job title 0.01 0.02 0.02 Education level -0.01 0.02 -0.01 Gender inequality -0.13 0.04 -0.12** Trust 0.11 0.04 0.14** Social justice 0.00 0.03 0.00 Wasta -0.04 0.02 -0.07 Organisational Culture 0.58 0.05 0.57** Career development 0.09 0.04 0.09* Remuneration 0.01 0.03 0.01 English Fluency -0.02 0.02 -0.04
Step1 ΔR 2=.026 Step 2 ΔR2=.448 Step 3 ΔR 2=.162
+ + + F
* % explained variance in dependent variable Note. Significant variables in bold,
Demographic variables
Social value variables
O rganisational value variables
1. Gender 2. Age 3. Job tile 4. Education level
1. Gender inequality 2. Trust 3. Social justice 4. W asta (Nepotism)
1. Organisation C ulture2. Career development 3. Compensation system 4. English language
Organisational engagement
Human value V ariable
63.6% *
Figure 8.4: Hierarchical regression – independent variables (demographic, social and organisational value variables) on dependent variable (organisational engagement) in the public sector.
Figure 8.4 shows only age was significant under demographic value variables;
under social value variables, gender inequality and trust were significant, and under
organisational value variables, organisational culture and career development were
significant. Gender, job title, Education level, social justice, wasta, remuneration and
English fluency did not play a significant role in explaining variation in the
dependent variable of organisational engagement. Thus, H12 is partially supported.
The final regression equation for organisational engagement follows
Organisational engagement =1.519 -.063(age)-.125(gender inequality)+.112
(trust)+
.582(organisational culture)+.093(career development)
Organisational engagement =2.118.
8.3.2 H13 Independent Variable Training and Development
In the following section, H13 is tested to examine the impact of two sets of
variables (social value and organisational value) on training and development in the
public sector.
Hypothesis (H13): In the public sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) will explain unique variance in the human capital variable of training and development.
216
The three-stage hierarchical regression analysis to test H13, using significant
variables to explain the percentage of variance in the dependent variable in each
stage is in the following section.
Step 1 Demographic Variables on Training and Development: In the first step
(model 1), demographic variables (age, education, job title and gender) were entered
into the hierarchical regression and acted as controls. The results are shown at Table
8.22.
Table 8.22: Public Sector Model 1 Statistical Summary of Training and Development.
Model R
R2 Adjusted R2 F Std. Error of the Estimate Sig
1 .121 .015 .004 1.345 .89452 .253
The multiple R (.121) shown in Table 8.22 was statistically insignificant,
R2=.015, F(4,362)=1.345, p>.05. In total, 1.5 per cent (0.4% adjusted) of the variation
in training and development was accounted for by the set of demographic variables.
As indicated in Table 8.20, only one demographic value variable (job title) was
significant.
Table 8.23: Public Sector Model 1 Coefficient Regression, Training and Development
Model 1 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 1.950 .371 5.260 .000 Gender .073 .099 .040 .734 .463 .045 .039 .038Age .020 .048 .023 .409 .683 -.013 .021 .021Job title .096 .047 .126 2.042 .042 .111 .107 .107Education level .016 .038 .026 .415 .678 -.035 .022 .022
Table 8.23 finds that the standardised regression coefficient (β) for the control
variable, job title (β=.126, p<.05), was significant. Of the 1.5 per cent explained
variance, the squared semi-partial correlations (sr2) shown in the part of column of
Table 8.23 that job title explained 1.1 per cent (sr2=.1072) of this variance when all
other variables in the equation were controlled. Job title explains a significant unique
variance in training and development in public sector organisations. In step 1, gender,
age and education level did not significantly explain any additional unique variation.
217
Step 2 Demographic and Social Value Variables on Training and
Development: In the second step (model 2), social value variables were added to
demographic variables in the hierarchical regression. The results are shown at Table
8.24.
Table 8.24: Public Sector Models 1 & 2, Statistical Summary of Training and Development
Model R R2 Adjusted R2 F Std. Error of Estimate
Sig
1 .121 .015 .004 1.345 .89452 .253 2 .524 .274 .258 16.921 .77190 .000
The introduction of the social variables (gender inequality, trust, social justice and
wasta) caused R2 to change from .015 in model 1 to .274 in model 2 (see Table 8.24).
This was a significant change in R2 (ΔR2=.260, p<0.001). The multiple R (.524) was
statistically significant, R2=.274, F (4, 358)=16.921, p<.001. In total, 26 per cent
(25.8% adjusted) of the variation in training and development was accounted for by the
set of social value variables, in addition to the 1.5 per cent variance by the demographic
set, in total: 27.4 per cent of variance.
Table 8.25: Public Sector Model 2, Coefficient Regression, Training and Development
Model 2 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 1.962 .413 4.750 .000 Gender -.071 .095 -.039 -.748 .455 .045 -.039 -.034Age -.071 .043 -.084 -1.647 .100 -.013 -.087 -.074Job title .044 .041 .058 1.087 .278 .111 .057 .049Education level .014 .033 .022 .412 .681 -.035 .022 .019Gender inequality -.198 .068 -.147 -2.908 .004 -.272 -.152 -.131
Trust .481 .052 .447 9.278 .000 .474 .440 .418Social justice .057 .055 .054 1.038 .300 -.030 .055 .047Wasta -.085 .041 -.099 -2.062 .040 -.192 -.108 -.093
Table 8.25 shows that the standardised regression coefficient (β) for three social
value variables: gender inequality (β= -.147 p<.001), trust (β=.447, p<.001), and
wasta (β= -.099, p<.05) were significant. Of the 27.4 per cent explained variance, the
squared semi-partial correlations (sr2), part of column of Table 8.25, point out that the
most important variables in terms of unique variance explained were gender
inequality with 1.7 per cent (sr2=-.1312), trust with 17.4 per cent (sr2=.4182) and
218
wasta with 0.7 per cent (sr2=-.0932) of unique variance explained, when all variables
in the equation were controlled.
However, the pattern of significance for the demographic variables changed. In
step 1 (model 1), job title was significant; however, it became insignificant in step 2
(model 2). This was reflected in the respective semi-partial correlations (sr2). Job title
changed from a significant 1.1 per cent (sr2=.107) in step 1 to an insignificant 0.2 per
cent (sr2=.049) in step 2 of variation, when the four demographic value variables
(gender, age, job title and education level) and four social value variables (gender
inequality, trust, social justice and wasta) were controlled. Trust, gender inequality
and wasta were significant predictors and explained unique variations in the training
and development for public sector organisations. Of these, trust explains the greatest
unique variance in training and development in the public sector, followed by wasta
and gender inequality. In step 2, demographic value variables (gender, age, job title
and education level) and social justice did not significantly explain any additional
unique variation.
Step 3 Demographic, Social and Organisational Value Variables on Training
and Development: In the third step (model 3), after the demographic and social value
variables, organisational value variables were added into the hierarchical regression.
The results are shown at Table 8.26.
Table 8.26: Public Sector Models 1, 2 & 3, Statistical Summary of Training and Development Model R R2 Adjusted R2 F Std. Error of Estimate Sig
1 .121 .015 .004 1.345 .89452 .253 2 .524 .274 .258 16.921 .77190 .000 3 .652 .425 .405 21.786 .69112 .000
The introduction of the organisational variables (organisational culture, career
development, remuneration and English fluency) caused R2 to change from .274 in
model 2 to .425 in model 3 (see Table 8.26). This was significant change in R2 (Δ
R2=.150, p<0.001). The multiple R (.652) was statistically significant, R2=.425, F (4,
354)=21.786, p<.001.
Variation of 15 per cent (40.5% adjusted) in training and development was
accounted for by the set of organisational value variables after the 1.5 per cent
219
variance explained by the demographic set of variables and the 24.4 per cent
variance explained by the organisational set of variables were accounted for. In total
of 42.5 per cent of variance was explained.
Table 8.27:Public Sector Coefficient Regression: Training and Development
Mode 3 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial Part T VIF
(Constant) .800 .406 1.970 .050 0.70 1.44Gender -.222 .087 -.123 -2.555 .011 .045 -.135 -.103 0.78 1.28Age -.073 .039 -.085 -1.875 .062 -.013 -.099 -.076 0.65 1.54Job title .036 .038 .047 .939 .348 .111 .050 .038 0.69 1.44Education level -.012 .030 -.020 -.415 .678 -.035 -.022 -.017 0.76 1.32Gender inequality -.140 .062 -.104 -2.243 .025 -.272 -.118 -.090 0.42 2.40Trust .039 .067 .037 .585 .559 .474 .031 .024 0.73 1.37Social justice .074 .050 .070 1.481 .140 -.030 .078 .060 0.85 1.18Wasta -.031 .038 -.036 -.827 .409 -.192 -.044 -.033 0.38 2.61Organisational culture .748 .089 .550 8.443 .000 .619 .409 .340 0.61 1.65Career development .130 .074 .091 1.754 .080 .413 .093 .071 0.68 1.47Remuneration -.014 .047 -.015 -.304 .761 .322 -.016 -.012 0.87 1.15English fluency .027 .035 .033 .773 .440 -.001 .041 .031 0.70 1.44
Table 8.27 indicates that the standardised regression coefficient (β) for one
demographic variable, gender (β= -.123, p<.01); one social value variable, gender
inequality (β= -.104, p<.05); and one organisational value variable, organisational
culture (β=.550, p<.001); were significant. Multicollinearity indicates a high degree of
linear correlation amongst two or more independent variable, making it difficult to
separate their effects on the dependent variable. Tolerance values close to 1.0 indicate
a lack of multicollinearity, thus each independent variable’s effects on the dependent
variable is assumed to be singular (Hair et al. 2006). The tolerance values for two
independent variables shown in Table 8.27 are above .50: gender (.78), organisational
culture (.61); and less than .50 for one independent variable: gender inequality (.42).
The tolerance values are thus less indicative of multicollinearity. However, Table 8.27
also shows that all three independent variables are significantly contributing to the
dependent variable (training and development). Hence, the model is finalised.
Of the 42.5 per cent explained variance, the squared semi-partial correlations
(sr2) shown in the part of column of Table 8.27 that organisational culture 11.6 per
cent (sr2=.3402), gender explained 1.1 per cent (sr2=-.1032) and gender inequality 0.8
per cent (sr2=-.0902) of variance when all variables in the equation were controlled.
220
However, the pattern of significance for both the demographic and social value
variables changed. In step 2 (model 2), gender was insignificant; it became significant
in step 3 when controlled by the additional organisational set of variables. Trust and
wasta, which explained 17.4 per cent (sr2=.4182) and 0.7 per cent (sr2= -.0932)
respectively, of the Total 27.4 per cent variance explained by the end of step 2, now
explained 0.06 per cent (sr2=.0242) and 0.1 per cent (sr2=-.0332) respectively, of the
total 42.5 per cent variation by the end of step 3. With regard to the part correlations
(see Table 8.27) for all variables, organisational culture had the highest part
correlation (.340), which was also statistically significant at the .000 levels. This
variable explained 11.6 per cent of the total variance. Overall, the results show that
the organisational culture, gender inequality and gender were significant predictors
and explained unique variance in the training and development variable (see Table
8.27). Increases in any of these three variables result in an increase in training and
development in the public sector organisations. In step 3, age, job title, education
level, trust, social justice, wasta, career development, remuneration and English
fluency did not significantly explain any additional unique variance.
Summary: The multiple R (.652) was statistically significant after step 3, with
all independent variables in the equation, R =.425, F (4, 354)=21.786, p<.001. In step
1, job title was statistically significant unique variation in training and development in
the public sector. The addition of the social value variables in step 2 produces a
significant change in R2 (ΔR2=.260, p<0.001). Gender inequality, trust and wasta were
significant explainers of unique variation. In the final step, the introduction of
organisational value variables caused a significant increase in R2 (ΔR2=.150, p<.001).
The final results of this 3-step hierarchical regression analysis indicate, in order of
unique variance explained, that organisational culture, gender inequality and gender
explained the significant variation in the training and development variable (see Table
8.28) after the other variables were controlled.
221
222
Table 8.28: Public Sector, Hierarchical Regression Analysis for Training and Development
Methodology B SE β ΔR2
Step 1 .015 Gender 0.07 0.10 0.04 Age 0.02 0.05 0.02 Job title 0.10 0.05 0.13* Education level 0.02 0.04 0.03
Step 2 0.260** Gender -0.07 0.09 -0.04 Age -0.07 0.04 -0.08 Job title 0.04 0.04 0.06 Education level 0.01 0.03 0.02 Gender inequality -0.20 0.07 -0.15** Trust 0.48 0.05 0.45** Tradition female expectation 0.06 0.06 0.05 Wasta -0.09 0.04 -0.10*
Step 3 0.150** Gender -0.22 0.09 -0.12* Age -0.07 0.04 -0.09 Job title 0.04 0.04 0.05 Education level -0.01 0.03 -0.02 Gender inequality -0.14 0.06 -0.10* Trust 0.04 0.07 0.04 Social justice 0.07 0.05 0.07 Wasta -0.03 0.04 -0.04 Organisational culture 0.75 0.09 0.55** Career development 0.13 0.07 0.09 Remuneration -0.01 0.05 -0.01 English fluency 0.03 0.04 0.03
* p< .05. ** p< .001.
Note: For training and development, final model, F (4, 354)=21.786, p<.001, and total R2
=.425.B =unstandardised regression coefficients. β = Standardised Coefficients, SE= standard error of B, ΔR2= change in R square, significant variables in bold in step 3.
Figure 8.5: Public Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (training and development)
S tep 1 ΔR 2= .0 1 5 S tep 2 ΔR 2= .2 6 0 S tep 3 ΔR 2= .1 5 0
+ + + F
* % exp la ined va ria nce in d ep end en t va riab le N o te . S ig n ifican t va riab les in b o ld ,
D e m o grap h ic variab les
S o cia l va lu e variab les
O rgan isa tio n al va lu e variab les
1 . G en d er 2 . A ge 3 . Job tile 4 . E d u cation leve l
1 . G en d er in eq u ality 2 . T ru st 3 . S oc ia l ju stice 4 . W asta (N ep o tism )
1 . O rg an isa tio n C u ltu r e2 . C areer d evelo p m en t 3 . C o m p en sa tion syste m 4 . E n g lish lan gu age
T ra in ing and d evelo p m ent
H u m an va lu e V ariab le
4 2 .5 % *
As indicated in Figure 8.5, only gender was significant under demographic
value variables; under social value variables, gender inequality was significant and
under organisational value variables, organisational culture was significant. Age, job
title, education level, trust, social justice, wasta, career development, remuneration
and English fluency did not play a significant role in explaining variation in the
dependent variable of training and development. Thus, H13 was partially supported.
The final regression equation for training and development is:
Training and development =.800 -.222(gender)-.140(gender inequality)+.748
(organisational culture)
Training and development =1.186.
In the next section, Hypotheses H14 and H15 for the private sector organisations
are tested using two dependent variables, organisational engagement and training and
development.
8.4 Private Sector Analysis
In the following sections, the three-stage hierarchical regression analysis is
used to test the H14 and H15 separately. The independent and dependent variables
are first selected, then the role played by each independent variable in the prediction
of the dependent measure is delineated. In addition, the degree and character of the
relationship between dependent and independent variables is assessed by forming
the variate of independent variables and then, in three stages, examining the
magnitude, sign, and statistical significance of the regression coefficient for each
independent variable. As presented, the demographic set of variables is the first to
enter, followed by the social set, then organisational. The final two Hypotheses
(H14 & H15) tested are as follows:
Hypothesis 14 (H14): In the private sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) will explain unique variance in the human capital variable of organisational engagement.
Hypothesis 15 (H15): In the private sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational
223
224
culture, career development, remuneration and English fluency) will explain unique variance in the human capital variable of training and development.
Descriptive statistics including mean, standard deviations, Cronbach alpha, and
bivariate correlation matrix of the variables for both Hypotheses (H14 and H15) are
included in the analysis. Table 8.29 H14, H15: Matrix Comparison of Descriptive
Analyses for Variables for all Private Sector Constructs presents these results.
Table 8.29 H14, H15: Matrix Comparison of Descriptive Analyses for Variables for all Private Sector Constructs
Variables M SD Gender Age Job Title
Education Gend Ineq.
Trust Social Justice.
Wasta Org. Culture
Car Dev
Pay EnglishFluency
Organ. Engagt
Trng & .Dev’t.
Gender 1.56 .50 (-)
Age 1.76 .86 -.03
(-)
Job title 3.67 1.33 .13** -.12**
(-)
Education 4.47 1.41 .04 .21** -.15**
(-)
Gender inequality 3.23 .70 -.11** .02 -.09* .01
(.74)
Trust 2.59 .84 .15** 0 .05 .07 -.22**
(.69)
Social justice 3.35 .78 .28** .00 -.03 .08 .39** -.11*
(.62)
Wasta (Nepotism) 2.40 1.09 .02 -.07 -.06 .07 .29** -.16** .23**
(.76)
Organisational culture 2.65 .70 .23** -.03 .13** -.01 -.33** .74** -.09* -.20**
(.90)
Career development 2.13 .62 .15** .02 .11* -.10* -.18** .52** -.02 -.08 .57**
(.74)
Remuneration 3.19 1.05 .16** -.02 .14** -.01 -.24** .58** -.07 -.18** .56** .34**
(.79)
English fluency 3.54 1.14 .04 .02 -.13** .21** .08 0 .15** .10* -.01 -.08* -.02
(.77)
Organisational engagement 2.80 .69 .17** -.05 .12** -.03 -.33** .67** -.14** -.30** .81** .48** .56** -.01
(.78)
Training and development 2.33 .86 .17** .02 .11** -.07 -.24** .50** -.09* -.13** .68** .50** .39** -.02 56**
(.78)
* p< 0.05; **p< 0.01 Note. N=562. Cronbach’s alpha are given in parentheses on the diagonal
225
Table 8.29 shows that the majority of the scales used in the study showed good
internal consistency. The alpha for all scale variables exceeds the critical value of
0.60 (Malhotra 1993). In fact, all except two are above 0.70, the exceptions are trust
and social justice, alpha =.69 and 0.62 respectively. Overall, a strong reliability is
demonstrated with coefficient alpha ranging from 0.62 to 0.90.
The results presented in Table 8.29 (N=562) indicate a strong significant and
positive relationship between organisational culture and organisational engagement
(r= 0.81, p<0.01), organisational culture and trust (r=0.74, p<0.01), organisational
culture and training and development (r=0.68, p<0.01), trust and organisational
engagement (r=0.67, p<0.01), and remuneration and organisational engagement
(r=0.56, p<0.01). However, a significant and negative relationship was found
between gender inequality and organisational culture(r=-0.33, p<0.01), wasta and
organisational engagement (r=-0.30, p<0.01) and gender inequality and trust (r=-0.22,
p<0.01).
Also showing a weak and negative relationship were educational level and
career development (r=-0.10, p<0.05), trust and wasta (r=-0.16, p<0.05), social
justice and organisational culture (r=-0.9, p<0.05); while a substantial relationship
was found between the control variables (gender and job title) and dependent
variables (organisational engagement and training and development). The strongest
significant correlation found was between organisational culture and organisational
engagement (r=0.81, p<0.01), while the weakest significant correlation was found
between social justice and organisational culture (r=-0.09, p<0.05).
8.4.1 H14 Independent Variable Organisational Engagement
In the following section, the three-stage hierarchical regression analysis is used
to test H14. Semi-partial (sr) correlation will be used to identify the amount of unique
variance explained by variables in each step. A diagram is used to illustrate the
significant variables and the amount of variation in the dependent variable accounted
for by that stage of the hierarchical regression analysis.
Private Sector Step 1 Demographic Variables on Organisational Engagement:
In the first step (model 1), demographic variables (age, education, job title and
gender) were entered into the hierarchical regression and acted as controls. The
226
multiple R (.203) was statistically significant, R2=.041, F(4, 558)=6.019, p< .001 (see
Table 8.30).
Table 8.30: Private Sector Model 1 Statistical Summary of Organisational Engagement Model
R R2 Adjusted R2 F Std. Error of
Estimate Sig
1 .203 .041 .034 6.019 .67338 .000
In total, 4.1% (3.4% adjusted) of the variation in organisational engagement at
Table 8.30 was accounted for by the set of demographic variables.
Table 8.31: Private Sector Model 1 Coefficient Regression, Organisational Engagement
Model Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 2.330 .160 14.529 .000 Gender .221 .058 .160 3.823 .000 .173 .160 .158Age -.022 .034 -.027 -.641 .522 -.047 -.027 -.027Job title .051 .022 .098 2.312 .021 .123 .097 .096Education level -.005 .021 -.011 -.251 .802 -.026 -.011 -.010
Table 8.31 results were the standardised regression coefficient (β) for the two
control variables gender (β=.160, p<.001) and job title (β=.098, p<.05) were
significant. Of the 4.1 per cent explained variance, the squared semi-partial
correlations (sr2) shown in the part of column of Table 8.31 that gender explained 2.5
per cent (sr2=.1582) and job title explained 0.9 per cent (sr2=.0962) of this variance
when all other variables in the equation were controlled. Of the two demographic
variables, gender explains greater unique variance in organisational engagement in
the private sector organisations. However, age and education level did not
significantly explain any additional unique variation.
Private Sector Step 2: Demographic and social value variables on
organisational engagement: In the second step (model 2), social value variables
were entered after the demographic variables into the hierarchical regression. The
introduction of the social variables (gender inequality, trust, social justice and wasta)
caused R2 to change from .041 in model 1 to .516 in model 2, (see Table 8.32).
227
Table 8.32:Public Sector Models 1 & 2, Statistical Summary of Organisational Engagement
Model R
R2 Adjusted R2 F Std. Error of Estimate
Sig
1 .203 .041 .034 6.019 .67338 .000 2 .718 .516 .509 73.775 .48028 .000
Table 8.32 shows a significant change in R2 (ΔR2=.474, p<0.001). The multiple
R (.718) was statistically significant, R =.516, F (4, 554) =73.775, p<.001. Therefore,
47.4 per cent (50.9% adjusted) of the variation in organisational engagement was
accounted for by the set of social value variables, in addition to the 4.1 per cent
variance by the demographic set of variables grouping; in total, 51.6 per cent of
variance was explained.
Table 8.33: Private Sector Model 2: Coefficient Regression. Organisational Engagement
Model 2 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial Part
(Constant) 2.077 .174 11.904 .000 Gender .083 .045 .060 1.846 .065 .173 .078 .055Age -.032 .024 -.040 -1.301 .194 -.047 -.055 -.038Job title .029 .016 .056 1.830 .068 .123 .078 .054Education level -.019 .015 -.040 -1.285 .199 -.026 -.055 -.038Gender inequality -.130 .033 -.134 -3.896 .000 -.325 -.163 -.115Trust .494 .025 .606 19.576 .000 .670 .639 .579Social justice .002 .030 .002 .059 .953 -.137 .003 .002Wasta -.098 .020 -.156 -4.942 .000 -.297 -.205 -.146
The standardised regression coefficient (β) for three social value variables:
gender inequality (β= -.134 p<.001), trust (β=.606, p<.001), and wasta (β= -.156,
p<.001) were significant. Of the 51.6 per cent explained variance, the squared semi-
partial correlations (sr2) shown in the part of column of Table 8.33 that the most
important variables in terms of unique variance explained were gender inequality with
1.3 per cent (sr2= -.1152), trust with 33.5 per cent (sr2=.5792) and wasta with 2.1 per
cent (sr2=-.1462) of unique variance when all variables in the equation were controlled
for.
The pattern of significance for the demographic variables changed. In step 1
(model 1), both gender and job title were significant; however, they became
insignificant in step 2 (model 2). This was reflected in their respective semi-partial
correlations (sr2). Gender and job title changed from a significant 2.5 per cent
(sr2=.158) and 0.9 per cent (sr2= .096) respectively, in step 1 to an insignificant .3 per
228
cent (sr2=.0552) and .3 per cent (sr2=.0542) respectively in step 2. That means gender
and job title in step 2 explained an insignificant amount of unique variance (total .6
per cent) of the total 51.6 per cent explained variance in organisational engagement in
the private sector organisations. The trust, gender inequality and wasta variables were
significant predictors and explained unique variation in organisational engagement in
the private sector. Of these, trust explains the greatest unique variance in
organisational engagement, followed by gender inequality and wasta. In step 2,
demographic value variables (gender, age, job title and education level) and one social
value variable (social justice) did not play a significant role in explaining variation in
the dependent variable of organisational engagement in these organisations.
Private Sector Step 3: Demographic, social and organisational value variables
on organisational engagement: In the third step (model 3), organisational value
variables were added after the demographic and social value variables into the
hierarchical regression (see Table 8.34).
Table 8.34: Private Sector, Models 1, 2, & 3 Organisational Engagement Summary
Model R
R2 Adjusted R2 F Std. Error of Estimate
Sig
1 .203 .041 .034 6.019 .67338 .000 2 .718 .516 .509 73.775 .48028 .000 3 .832 .692 .685 103.076 .38432 .000
The introduction of the organisational variables (organisational culture, career
development, remuneration and English fluency) caused R2 to change from .516 in
model 2 to .692 in model 3 (see Table 8.34). This was a significant change in R2
(ΔR2=.176, p<0.001). The multiple R (.832) was statistically significant, R2=.692, F(4,
550)=103.076, p<.001.
In total 17.6 per cent (68.5% adjusted) variation in organisational engagement
was accounted for by the set of organisational value variables after the 4.1 per cent
variance explained by the demographic set of variables and the 51.6 per cent
variance explained by the organisational set were accounted for. In total of 69.2 per
cent was explained. Table 8.35 below, presents this analysis.
229
Table 8.35: Public Sector Coefficient Regression: Organisational Engagement
Model 3 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial
Part T VIF
(Constant) 1.025 .157 6.518 .000 Gender -.001 .036 -.001 -.025 .980 .173 -.001 -.001 0.82 1.22Age -.029 .020 -.036 -1.461 .145 -.047 -.062 -.035 0.93 1.07Job title .005 .013 .009 .360 .719 .123 .015 .009 0.92 1.09Education level -.004 .012 -.009 -.339 .735 -.026 -.014 -.008 0.87 1.15Gender inequality -.022 .027 -.022 -.795 .427 -.325 -.034 -.019 0.71 1.42Trust .091 .031 .112 2.924 .004 .670 .124 .069 0.38 2.63Social justice -.027 .024 -.031 -1.116 .265 -.137 -.048 -.026 0.71 1.40Wasta -.077 .016 -.122 -4.798 .000 -.297 -.200 -.114 0.86 1.16Organisational culture .599 .039 .610 15.38
0.000 .806 .549 .364 0.36 2.81
Career development .023 .033 .021 .705 .481 .477 .030 .017 0.63 1.58Remuneration .076 .020 .116 3.821 .000 .559 .161 .090 0.61 1.64English Fluency .016 .015 .027 1.086 .278 -.006 .046 .026 0.92 1.09
Table 8.35 shows that the standardised regression coefficient (β) for the two
social value variables [trust (β=.112, p<.001), and wasta (β=-.122 p<.001)] and two
organisational value variables [(organisational culture(β= .610 p<.001), and
remuneration (β=.116, p<.001)] were significant.
Of the 69.2 per cent explained variance, the squared semi-partial correlations
(sr2) in the part of column of Table 8.35 is evidence that the important variables in
terms of unique variance explained were organisational culture with 13.2 per cent
(sr2=3642), wasta with 1.3 per cent (sr2=-.1142), remuneration with 0.8 per cent
(sr2=.0902) and trust with 0.5 per cent (sr2=.0692) of unique variance explained, when
all variables in the equation were controlled.
The pattern of significance for both the demographic and social value variables
changed. In step 2 (model 2), gender inequality was significant; however, it became
insignificant in step 3 when controlled by an additional set of variables. Gender
inequality, which explained 1.3 per cent (sr2=-.1152) of the total 51.6 per cent in step
2, now explained 0.03% (sr2=-.0192) of the total 69.2 per cent variation by the end of
step 3. With regard to the part correlations for all variables (Table 8.35),
organisational culture has the highest part correlation (sr2=.364), which is also
statistically significant at the .000 levels. This variable explains 12.4 per cent of the
total variance. Overall, the results show that organisational culture, wasta,
remuneration and trust are significant predictors and explain unique variation in
organisational engagement in private sector organisations. Increases in any of these
230
four variables result in an increase in organisational engagement in the private sector
organisations. In step 3, demographic value variable (gender, age, job title and
education level), gender inequality, social justice, career development and English
fluency did not significantly explain any additional unique variance.
Summary: The multiple R (.832) was statistically significant after step 3, with
all independent variables in the equation, R2=.692, F (4, 550)=103.076, p<.001. In
step 1, gender and job title result in statistically significant unique variations in
organisational engagement in the private sector organisations. The addition of the
social value variables in step 2 produces a significant change in R2 (ΔR2=.474,
p<0.001). Gender inequality, trust and wasta were significant explicators of unique
variation. In the final step, the introduction of organisational value variables caused a
significant increase in R2 (ΔR2=.176, p<0.001). The final results of this 3-step
hierarchical regression analysis, in order of unique variance explained, find that
organisational culture, wasta, remuneration and trust explained significant variation in
organisational engagement in the private sector organisations (see Table 8.36).
231
Table 8.36: Private Sector, Hierarchical Regression Analysis for Organisation Engagement
Methodology Organisational Engagement B SE β ΔR2
Step 1 0.41**Gender 0.22 0.06 0.16** Age -0.02 0.03 -0.03 Job title 0.05 0.02 0.10* Education level -0.01 0.02 -0.01
Step 2 2.08 0.17 0.474**Gender 0.08 0.04 0.06 Age -0.03 0.02 -0.04 Job title 0.03 0.02 0.06 Education level -0.02 0.01 -0.04 Gender inequality -0.13 0.03 -0.13** Trust 0.49 0.03 0.61** Social justice 0.00 0.03 0.00 Wasta -0.10 0.02 -0.16**
Step 3 1.03 0.16 0.176**Gender 0.00 0.04 0.00 Age -0.03 0.02 -0.04 Job title 0.00 0.01 0.01 Education level 0.00 0.01 -0.01 Gender inequality -0.02 0.03 -0.02 Trust 0.09 0.03 0.11** Social justice -0.03 0.02 -0.03 Wasta -0.08 0.02 -0.12** Organisational Culture 0.60 0.04 0.61** Career development 0.02 0.03 0.02 Remuneration 0.08 0.02 0.12** English Fluency 0.02 0.01 0.03
* p< .05. ** p< .001.
Note: For organisational engagement, final model, F(4, 550) =103.076, p<.001, and total R2 =.692. B =unstandardised regression coefficients. β = Standardised Coefficients, SE= standard error of B, ΔR2= change in R square, significant variables in bold in step 3
232
Figure 8.6: Private Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (Organisational Engagement).
Step1 ΔR2=.041 Step 2 ΔR2=.474 Step 3 ΔR2=.176
+ + + F
* % explained variance in dependent variable Note. Significant variables in bold,
Demographic variables
Social value variables
Organisational value variables
1. Gender 2. Age 3. Job tile 4. Education level
1. Gender inequality 2. Trust 3. Social justice 4. Wasta (Nepotism)
1. Organisation Culture2. Career development 3. Compensation system4. English language
Organisational engagement
Human value Variable
62.2%*
As indicated in Figure 8.6 below, none of the demographic value variables was
significant. However, trust and wasta were significant under social value variables
and organisational culture, and remuneration was significant under organisational
value variables. Demographic value variable (gender, age, job title and education
level), gender inequality, social justice, career development and English fluency did
not play a significant role in explaining variation in the dependent variable of
organisational engagement. Thus, H14 was partially supported.
The final regression equation for organisational engagement is:
Organisational engagement =1.025+.091 (trust)-.0775 (wasta)+.599 (organisational
culture)+.076 (remuneration).
Organisational engagement =1.7135.
8.4.2 H15 Independent Variable Training and Development
The final H15 examines the impact of two sets of variables, social value and
organisational value sets, on training and development in private sector
organisations. The final H15 to test is:
Hypothesis (H15): In private sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) unique variance is explained in the human capital variable of training and development.
Private Sector Step 1: Demographic Variables on Training and Development:
In the first step (model 1), demographic variables (age, education, job title and
233
gender) were entered into the hierarchical regression and acted as controls. The
results are shown at Table 8.37.
Table 8.37: Public Sector Model 1 Statistical Summary of Training and Development
Model R
R2 Adjusted R2 F Std. Error of Estimate
Sig
1 .207 .043 .036 6.250 .84540 .000
The multiple R (.207) was statistically insignificant, R2=.043, F (4, 558)=6.250,
p<.001, shown in Table 8.37. In total, 4.3 per cent (3.6% adjusted) of the variation in
training and development was accounted for by the set of demographic variables (see
Table 8.38).
Table 8.38: Private Sector Model 1 Coefficient Regression, Training and Development
Model 1 Unstandardised Coefficients
Standardised Coefficients t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 1.784 .201 8.861 .000 Gender .282 .072 .163 3.887 .000 .169 .162 .161Age .053 .043 .053 1.233 .218 .022 .052 .051Job title .056 .028 .087 2.044 .041 .111 .086 .085Education level -.042 .026 -.070 -1.624 .105 -.066 -.069 -.067
Table 8.38 shows that the standardised regression coefficient (β) for the two
control variables, gender (β=.163, p<.001) and job title (β=.087, p<.05) were
significant. Of the 4.3 per cent explained variance, the squared semi-partial
correlations (sr2) shown in the part of column of Table 8.38 that gender explained 2.6
per cent (sr2= .1612) and job title explained 0.7per cent (sr2= .0852) of this variance
when all other variables in the equation were controlled for. Of the two demographic
variables, gender explained greater unique variance in training and development in the
private sector organisations. In step 1, age and education level did not significantly
explain any additional unique variation; only gender and job title of demographic
value variables were significant.
Private Sector Step 2: Demographic and Social Value Variables on Training
and Development: In the second step (model 2), social value variables were added to
demographic variables in the hierarchical regression. The results are shown at Table
8.39.
234
Table 8.39: Private Sector Models 1 & 2, Statistical Summary of Training and Development Model
R R2 Adjusted R2 F Std. Error of
Estimate Sig
1 .207 .043 .036 6.250 .84540 .000 2 .536 .287 .277 27.913 .73215 .000
The introduction of the social variables (gender inequality, trust, social justice
and wasta) caused R2 to change from .043 in model 1 to .287 in model 2 (see Table
8.39). This was a significant change in R2 (ΔR2=.244, p<0.001). The multiple R (.536)
was statistically significant, R2=287, F (4, 554)=27.913, p<.001. In total, 24.4 per cent
(27.7% adjusted) of the variation in training and development was accounted for by
the set of social value variables, in addition to the 4.3 per cent variance by the
demographic set of variables grouping in total of 28.7 per cent of variance was
explained.
Table 8.40: Private Sector Model 2, Coefficient Regression, Training and Development
Model 2 Unstandardised Coefficients
Standardised Coefficients
t Sig Correlations
b SE β Zero-order
Partial part
(Constant) 1.426 .266 5.362 .000 Gender .146 .068 .084 2.147 .032 .169 .091 .077Age .055 .037 .055 1.473 .141 .022 .062 .053Job title .039 .024 .060 1.633 .103 .111 .069 .059Education level -.061 .023 -.100 -2.685 .007 -.066 -.113 -.096Gender inequality -.151 .051 -.123 -2.968 .003 -.241 -.125 -.106Trust .471 .038 .460 12.241 .000 .497 .461 .439Social justice -.006 .046 -.006 -.141 .888 -.088 -.006 -.005Wasta .001 .030 .001 .030 .976 -.126 .001 .001
Table 8.40 indicates that the standardised regression coefficient (β) for two
demographic value variables, gender (β=.084 p<.05), and educational level (β= -.100
p<.001); and two social value variables, gender inequality (β= -.123 p<.001) and trust
(β=.460, p<.001); were significant. Of the 28.7 per cent explained variance, the
squared semi-partial correlations (sr2) shown in the part of column of Table 8.40 that
the most important variables in terms of unique variance explained were trust, with
19.3 per cent (sr2=.4392), gender inequality with 1.1 per cent (sr2=-.1062), educational
level with 0.9 per cent (sr2=-.0962), and gender with 0.6 per cent (sr2=.0772) of unique
variance explained, when all variables in the equation were controlled.
235
However, the pattern of significance for the demographic variables changed. In
step 1 (model 1), job title was significant; it became insignificant in step 2 (model 2).
Education level was insignificant in step 1 and became significant in step 2 (model 2).
This was reflected in their respective semi-partial correlations (sr2). Job title changed
from a significant 0.7 per cent (sr2=.0852) in step 1 to an insignificant 0.3 per cent
(sr2= .0592) in step 2. Education level, which was insignificant at 0.4 per cent (sr2=-
.0672) in step 1, became significant 0.9 per cent (sr2=-.0962) in step 2. The gender,
education level, gender inequality and trust variables were significant predictors and
explained unique variation in training and development in the private sector
organisations. Of these, trust has the greatest unique variance in training and
development in private sector organisations followed by gender, educational level and
gender inequality. In step 2, age, job title, social justice and wasta did not
significantly explain any additional unique variation.
Private Sector Step 3: Demographic, Social and Organisational Value
Variables on Training and Development: In the third step (Model 3), organisational
value variables were added into the hierarchical regression after demographic and
social value variables. The results are shown at Table 8.41.
Table 8.41:Private Sector Models 1, 2 & 3, Statistical Summary of Training and Development. Model
R R2 Adjusted R2 F Std. Error of
Estimate Sig
1 .207 .043 .036 6.250 .84540 .000 2 .536 .287 .277 27.913 .73215 .000 3 .696 .485 .473 43.091 .62487 .000
Table 8.41 shows that the introduction of organisational variables
(organisational culture, career development, remuneration and English fluency)
caused R2 to change from .287 in model 2 to .485 in model 3. There was a significant
change in R2 (ΔR2=.197, p<0.001). The multiple R (.696) was statistically significant,
R2=.485, F (4, 550)=43.091, p<.001. Variation in training and development of 19.7
per cent (47.3% adjusted) was accounted for by the set of organisational value
variables after the 4.3 per cent variance was explained by the demographic set of
variables and 28.7 per cent variance explained by the organisational set of variables
were accounted. In total, 48.5 per cent of variance was explained.
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Table 8.42: Private Sector Coefficient Regression: Training and Development
Model3 Unstandardised
Coefficients Standardised Coefficients t Sig Correlations
b SE β Zero-order
Partial
Part T VIF
(Constant) .017 .256 .065 .948 Gender .041 .059 .023 .693 .489 .169 .030 .021 0.82 1.22Age .049 .032 .049 1.552 .121 .022 .066 .047 0.93 1.07Job title .008 .021 .013 .410 .682 .111 .017 .013 0.92 1.09Education level -.031 .020 -.051 -1.549 .122 -.066 -.066 -.047 0.87 1.15Gender inequality
-.014 .045 -.011 -.312 .755 -.241 -.013 -.010 0.71 1.42
Trust -.050 .051 -.049 -.984 .326 .497 -.042 -.030 0.38 2.63Social justice -.047 .040 -.043 -1.184 .237 -.088 -.050 -.036 0.71 1.40Wasta .019 .026 .024 .724 .469 -.126 .031 .022 0.86 1.16Organisational culture
.734 .063 .595 11.59 .000 .676 .443 .355 0.36 2.81
Career development
.238 .054 .171 4.428 .000 .500 .186 .136 0.63 1.58
Remuneration .018 .032 .021 .547 .585 .388 .023 .017 0.61 1.64English Fluency .015 .024 .019 .609 .543 -.018 .026 .019 0.92 1.09
Table 8.42 indicates that the standardised regression coefficient (β) for the two
organisational value variables (organisational culture (β=.595, p<.001) and career
development (β=.171, p<.001)) were significant.
Of the 48.5 per cent explained variance, the squared semi-partial correlations
(sr2) shown in the part of column of Table 8.42 that the most important variables in
terms of unique variance explained where organisational culture with 12.6 per cent
(sr2=.3552), and career development 1.8 per cent (sr2=.1362) of variance when all
variables in the equation were controlled for.
However, the pattern of significance for both the demographic and social value
variables changed. In step 2 (model 2), gender, educational level, gender inequality
and trust were significant; they became insignificant in step 3 when controlled by
additional variables. This was reflected in their respective semi-partial correlations
(sr2). Gender, which explained 0.6 per cent (sr2=.0772), educational level 0.9 per cent
(sr2=-.0962) gender inequality 1.1 per cent (sr2=-.1062) and trust explained 19.2 per
cent (sr2=.4392) of the total 28.7 per cent variance explained by the end of step 2; now
gender explained 0.04 per cent (sr2=.0212), educational level 0.2 per cent (sr2=-.0472),
gender inequality 0.01 per cent (sr2=-.0102) and trust explained 0.09 per cent (sr2=-
.0302) of the total 48.5 per cent variation in step 3. With regard to part correlations
(see Table 8.42) for all variables organisational culture has the highest part correlation
(sr=.355), which is also statistically significant at the .000 levels. This variable
237
explains 12.6 per cent of the total variance. Overall, the results show that
organisational culture and career development were significant predictors and
explained variation in training and development in the private sector organisations.
Increase in any of these two variables result in increase in training and development in
the private sector organisations. In step 3, demographic value variable (gender, age,
job title and education level) and social value variables (gender inequality, trust,
social justice, wasta), remuneration and English fluency did not significantly explain
any additional unique variation.
Summary: The multiple R (.696) was statistically significant after step 3, with
all independent variables in the equation, R2=.485, F (4, 550)=43.091, p<.001. In step
1, gender and job title were statistically significant variables of training and
development in private sector organisations. The addition of the social value variable
set in step 2 produced a significant change in R2 (ΔR2=.244, p<0.001). In step 2,
gender, educational level, gender inequality and trust variables were statistically
significant. In the final step, the introduction of organisational value variables caused
a significant increase in R2 (ΔR2=.197, p<0.001).
The final results of this 3-step hierarchical regression analysis are, in order of
unique variance explained, that two of the organisational value variables
(organisational culture and career development) explained the significant variation in
training and development after the other variables were controlled (see Table 8.43).
238
Table 8.43: Private Sector, Hierarchical Regression Analysis for Training and Development
Methodology Organisational Engagement B SE β ΔR2
Step 1 0.43** Gender 0.28 0.07 0.16** Age 0.05 0.04 0.05 Job title 0.06 0.03 0.09* Education level -0.04 0.03 -0.07
Step 2 0.244** Gender 0.15 0.07 0.08* Age 0.05 0.04 0.05 Job title 0.04 0.02 0.06 Education level -0.06 0.02 -0.10** Gender inequality -0.15 0.05 -0.12** Trust 0.47 0.04 0.46** Social justice -0.01 0.05 -0.01 Wasta 0.00 0.03 0.00
Step 3 0.197** Gender 0.04 0.06 0.02 Age 0.05 0.03 0.05 Job title 0.01 0.02 0.01 Education level -0.03 0.02 -0.05 Gender inequality -0.01 0.04 -0.01 Trust -0.05 0.05 -0.05 Social justice -0.05 0.04 -0.04 Wasta 0.02 0.03 0.02 Organisational culture 0.73 0.06 0.59** Career development 0.24 0.05 0.17** Remuneration 0.02 0.03 0.02 English Fluency 0.01 0.02 0.02
* p< .05. ** p< .001. Note: For training and development, final model, F(4, 550) =43.091, p<. 001, and total R2
=.48.5. B =unstandardised regression coefficients. β=Standardised Coefficients, SE=standard error of B, ΔR2= change in R square, significant variables in bold in step 3.
239
Figure 8.7: Private Sector Hierarchical Progression Independent Variables (Demographic, Social and Organisational Values) on Dependent Variable (training and development)
Step1 ΔR2=.043 Step 2 ΔR2=.244 Step 3 ΔR2=.197
+ + + F
* % explained variance in dependent variable Note. Significant variables in bold,
Demographic variables
Social value variables
Organisational value variables
1. Gender 2. Age 3. Job tile 4. Education level
1. Gender inequality 2. Trust 3. Social justice 4. Wasta (Nepotism)
1. Organisation Culture2. Career development 3. Compensation system 4. English language
Training and development
Human value Variable
48.5%*
As indicated in Figure 8.7 Private Sector Hierarchical Progression Independent
Variables (Demographic, Social and Organisational Values) on Dependent Variable
(Organisational Engagement), none of demographic and social value variables were
significant, and under organisational value variables, organisational culture and career
development were significant. Demographic value variables (gender, age, job title and
education level), social value variables (gender inequality, trust, social justice and
wasta), and two organisational value variables (remuneration and English fluency) did
not play a significant role in explaining variation in the dependent variable of training
and development. Thus, H15 was partially supported.
The final regression equation for training and development is:
Training and development = .017+.734 (organisational culture)+.238 (career
development)
Training and development=0.989.
8.5 Sector Comparison
Thus the following research questions
• Identify the factors to enhance placement and retention of UAE nationals in
Dubai workplaces
• Establish whether these factors differ for organisations in the public or private
sectors
240
241
• Explain variations in UAE nationals’ engagement with their organisations are
addressed. This section is a synopsis of the results of the analysis,
8.5.1 Organisational Engagement
Table 8.44 Public and Private Sectors, Hierarchical Regression Analysis for
Organisational Engagement compares the results of this analysis.
Table 8.44: Sector Comparison, Hierarchical Regression Analysis for Organisational
Engagement Methodology Public Private
B SE β ΔR2 B SE β ΔR2
Step 1 0.26* 0.41** Gender 0.16 0.07 0.12* 0.22 0.06 0.16** Age 0.02 0.04 0.04 -0.02 0.03 -0.03 Job title 0.07 0.03 0.12* 0.05 0.02 0.10* Education level 0.01 0.03 0.02 -0.01 0.02 -0.01 Step 2 0.448** 2.08 0.17 0.474** Gender 0.07 0.06 0.05 0.08 0.04 0.06 Age -0.06 0.03 -0.10* -0.03 0.02 -0.04 Job title 0.02 0.03 0.04 0.03 0.02 0.06 Education level 0.01 0.02 0.02 -0.02 0.01 -0.04 Gender inequality -0.18 0.04 -0.18** -0.13 0.03 -0.13** Trust 0.46 0.03 0.58** 0.49 0.03 0.61** Social justice -0.02 0.04 -0.03 0.00 0.03 0.00 Wasta -0.09 0.03 -0.14** -0.10 0.02 -0.16** Step 3 0.162** 1.03 0.16 0.176** Gender -0.03 0.05 -0.02 0.00 0.04 0.00 Age -0.06 0.02 -0.10** -0.03 0.02 -0.04 Job title 0.01 0.02 0.02 0.00 0.01 0.01 Education level -0.01 0.02 -0.01 0.00 0.01 -0.01 Gender inequality -0.13 0.04 -0.12** -0.02 0.03 -0.02 Trust 0.11 0.04 0.14** 0.09 0.03 0.11** Social justice 0.00 0.03 0.00 -0.03 0.02 -0.03 Wasta -0.04 0.02 -0.07 -0.08 0.02 -0.12** Organisational Culture 0.58 0.05 0.57** 0.60 0.04 0.61** Career development 0.09 0.04 0.09* 0.02 0.03 0.02 Remuneration 0.01 0.03 0.01 0.08 0.02 0.12** English Fluency -0.02 0.02 -0.04 0.02 0.01 0.03
* p< .05. ** p< .001 Note: For organisational engagement, final model for the public sector, F (4, 354) =51.609, p<.001, and total R2 =. 636. Final model for the private sector, F (4, 550) =103.076, p<. 001, and total R2 =. 692 B =unstandardised regression coefficients. β = Standardised Coefficients, .SE= standard error of B, ΔR2= change in R square, significant variables in bold in step 3.
Table 8.44 compares the public and private sectors on organisational
engagement. In the third step, the standardised regression coefficient (β) for one
demographic variable age (β=-.10, p<.001), two social value variables (gender
inequality (β=-.12, p<.001) and, trust (β=.14, p<.001)) and two organisational value
variables [organisational culture (β=.57, p<.001) and career development (β=.09,
p<.05)] were significant in the public sector. But in the private sector organisations
(Table 8.44), none of standardised regression coefficients (β) for the demographic
value variables were significant. In the social value variable set, trust (β=.11, p<.001)
and wasta (β=-.12, p<.001); in the organisational value variables, organisational
culture (β=.61, p<.001) and remuneration (β=.12, p<.001) were statistically
significant.
Of the 63.6 per cent explained variance in the public sector organisations, the
squared semi-partial correlations (sr2) show the important variables in terms of unique
variance explained were organisational culture 12.6 per cent (sr2=.3552); gender
inequality 1.2 per cent (sr2=-.1082); trust 0.8 per cent (sr2=.0902); age 0.8 per cent
(sr2=-.0882); and career development 0.4 per cent (sr2=.0672) of variance when all
variables in the equation were controlled (see Table 8.44).
However, in the private sector organisation, of the 69.2 per cent explained
variance, squared semi-partial correlations (sr2) show the important variables in terms
of unique variance explained: organisational culture with 13.2 per cent (sr2=3642);
wasta with 1.3 per cent (sr2= -.1142); remuneration with 0.8 per cent (sr2=.0902); and
trust with 0.5 per cent (sr2=.0692) when all variables in the equation were controlled
(see Table 8.44). This table also shows that organisational culture in both sectors is the
most significant variable in terms of unique variance explained.
The pattern of significance for both the demographic and social value variables
changed for both sectors. In step 2 (Table 8.44), wasta in the public sector
organisations was significant; however it became insignificant in step 3 when
controlled for an additional set of variables. Wasta, which explained 1.7 per cent
(sr2=-.1312) of the total 47.4 per cent variance by the end of step 2, now explained 0.4
per cent (sr2= -.0612) of the total 63.6 per cent variance by the end of step 3 (see Table
8.20).
In step 2 (Table 8.44), gender inequality in the private sector organisations was
significant, although it became insignificant in step 3 when controlled for an
additional set of variables. Gender inequality, which explained 1.3 per cent (sr2=-
242
.1152) of the total 51.6 per cent in step 2, now explained 0.03 per cent (sr2=-.0192) of
the total 69.2 per cent variation by the end of step 3 (see Table 8.35).
With regard to the part correlations (Table 8.20) for all variables in the public
sector organisations, the result is that organisational culture has the highest part
correlation (sr2=.355), which is also statistically significant at the .000 levels.
Organisational culture explains 12.6 per cent of the total variance; while in the private
sector, organisational culture also shows the highest part correlation (sr2=.364) and it
is also statistically significant at the .000 levels. Organisational culture explains 13.2
per cent of the total variance. Overall, the comparison hierarchical regression shows
that organisational culture, trust, gender inequality, age and career development were
significant predictors and explained unique variation in organisational engagement in
the public sector organisations (see Table 8.44).
The results of the analysis also show that organisational culture, remuneration,
wasta and trust were significant predictors and explained significant variations in
organisational engagement in the private sector organisations. Increases in any of
these variables result in increase in organisational engagement in the both the public
and private sector organisations. In step 3 in the public sector organisations, gender,
job title and education level, social justice, wasta, remuneration and English fluency
did not significantly explain any additional unique variance; while in the private
sector organisations in step 3, demographic value variables (gender, age, job title and
education level), gender inequality, social justice, career development and English
fluency did not significantly explain any additional unique variance (see Table 8.44).
8.5.2 Training and Development
Table 8.45 Public and Private Sectors, Hierarchical Regression Analysis for
Training and Development compares these results.
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244
Table 8.45: Public and Private Sectors, Hierarchical Regression Analysis for Training and Development
Methodology Public Private
B SE β ΔR2 B SE β ΔR2
Step 1 0.015 0.43** Gender 0.07 0.10 0.04 0.28 0.07 0.16** Age 0.02 0.05 0.02 0.05 0.04 0.05 Job title 0.10 0.05 0.13* 0.06 0.03 0.09* Education level 0.02 0.04 0.03 -0.04 0.03 -0.07 Step 2 0.260** 0.244** Gender -0.07 0.09 -0.04 0.15 0.07 0.08* Age -0.07 0.04 -0.08 0.05 0.04 0.05 Job title 0.04 0.04 0.06 0.04 0.02 0.06 Education level 0.01 0.03 0.02 -0.06 0.02 -0.10** Gender inequality -0.20 0.07 -0.15** -0.15 0.05 -0.12** Trust 0.48 0.05 0.45** 0.47 0.04 0.46** Social justice 0.06 0.06 0.05 -0.01 0.05 -0.01 Wasta -0.09 0.04 -0.10* 0.00 0.03 0.00 Step 3 0.150** 0.197** Gender -0.22 0.09 -0.12* 0.04 0.06 0.02 Age -0.07 0.04 -0.09 0.05 0.03 0.05 Job title 0.04 0.04 0.05 0.01 0.02 0.01 Education level -0.01 0.03 -0.02 -0.03 0.02 -0.05 Gender inequality -0.14 0.06 -0.10* -0.01 0.04 -0.01 Trust 0.04 0.07 0.04 -0.05 0.05 -0.05 Social justice 0.07 0.05 0.07 -0.05 0.04 -0.04 Wasta -0.03 0.04 -0.04 0.02 0.03 0.02 Organisational Culture 0.75 0.09 0.55** 0.73 0.06 0.59** Career development 0.13 0.07 0.09 0.24 0.05 0.17** Remuneration -0.01 0.05 -0.01 0.02 0.03 0.02 English Fluency 0.03 0.04 0.03 0.01 0.02 0.02
* p< .05. ** p< .001. Note: For training and development, final model for the public sector, F(4, 354)=21.786, p<.001, and total R2 =.425. Final model for the private sector, F(4, 550)=43.091, p<.001, and total R2 =.48.5, B =unstandardised regression coefficients. β = Standardised Coefficients, .SE = standard error of B, ΔR2= change in R square, significant variables in bold in step 3.
Comparison of sector results on training and development (Table 45) shows that
in the third step, the standardised regression coefficient (β) for one demographic
variable gender (β= -.12, p<.05), one social value variable (gender inequality (β= -.10,
p<.05) and one organisational value variable (organisational culture (β=.55, p<.001)
were significant for public sector organisations. In contrast, in the private sector
organisations, none of standardised regression coefficients (β) for the demographic
value variables and social value variables were significant; whereas the organisational
value variables organisational culture (β=.59, p<.001) and career development (β=.17,
p<.001) were statistically significant.
Of the 42.5 per cent explained variance in the public sector organisations, the
squared semi-partial correlations (sr2) show that the most important variables in terms
of unique variance explained were organisational culture 11.6 per cent (sr2=.3402),
gender 1.1 per cent (sr2=-.1032) and gender inequality 0.8 per cent (sr2=-.0902) of
variance when all variables in the equation were controlled. However, in the private
sector organisations, of the 48.5 per cent explained variance, square semi-partial
correlations (sr2) show that the most important variables in terms of unique variance
explained where organisational culture with 12.6 per cent (sr2=3552) and career
development with 1.8 per cent (sr2=.1362) of unique variance explained when all
variables in the equation were controlled for. Table 8.45 also shows that
organisational culture in both sectors is the most significant variable in terms of
unique variance explained.
However, the pattern of significance for both the demographic and social value
variables has change in both sectors. In step 2 (Table 8.45), gender in the public
sector organisations was insignificant; however it became significant in step 3 when
controlled for an additional set of variables. Gender, which explained 0.1 per cent
(sr2=-.0342) of the total 27.4 per cent variance by the end of step 2, now explained 1
per cent (sr2=-.1032) of the total 42.5 per cent variance by the end of step 3. Trust and
wasta, which were significant in step 2 became insignificant in step 3 when
controlled for an additional set of variables. Trust and wasta, explaining 17.4 per cent
(sr2= -.4182 and 0.8 per cent (sr2= -.0932) respectively of the total 27.4 per cent
variance by the end of step 2, now explained 0.05 per cent (sr2=.0242) and 0.1 per
cent (sr2=-.0332) respectively of the total 42.5 per cent variance by the end of step 3
(see Table 8.45).
In contrast, in the private sector organisations Table 8.45 shows in step 2 that
gender, education level, gender inequality and trust were significant, however they
became insignificant in step 3 when controlled for an additional set of variables. Thus
gender, education level, gender inequality and trust, which explained 0.6 per cent
(sr2=.0772), 0.9 per cent (sr2=-.0962), 1.1 per cent (sr2=-.1062), 19.2 per cent
(sr2=.4392) respectively of the total 28.7 per cent variance in step 2, now explained
0.04 per cent (sr2=.0212), 0.2 per cent (sr2=-.0472), 0.01 per cent (sr2= -.0102), 0.09
per cent (sr2=.0302) respectively, of the total 48.5 per cent variation by the end of step
3 (see Table 8.45).
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246
With regard to the part correlations (Table 8.27) for all variables in the public
sector organisations, the results show that organisational culture has the highest part
correlation (sr2=.340), which is also statistically significant at the .000 levels.
Organisational culture explains 11.5 per cent of the total variance. In the private
sector, organisational culture also shows the highest part correlation (sr2=.355),
which is also statistically significant at the p<.001 levels. Organisational culture
explained 12.6 per cent of the total variance. Overall, the comparison of sectoral
hierarchical regressions shows that organisational culture, gender and gender
inequality were significant predictors and explained significant variation in training
and development in the public sector (see Table 8.45); while in the private sector,
organisational culture and career development were significant predictors and
explained significant variation in training and development in those organisations.
Increases in any of these variables result in increase in training and development in
the both the public and private sector organisations.
In step 3 in the public sector organisations, age, job title, education level, trust,
social justice, wasta, career development, remuneration and English fluency did not
significantly explain additional unique variance. In the private sector, demographic
value variables (gender, age, job title and education level), social value variables
(gender inequality, trust, social justice), remuneration and English fluency did not
significantly explain any additional unique variance in step 3 (see Table 8.45).
8.5.3 Tests Summary
The following synopsis of analysis, Table 8.46 Summary of Hypothesis Testing
finalises this section of the thesis.
H Statement Measurement Supported/ rejected
Note
H1 There is a significant correlation between the human, organisational and social variables Pearson’s correlation coefficient
Partially supported
Most variables are correlated
H2 There is a significant correlation between human, organisation and social constructs Pearson’s correlation coefficient
Partially supported
No correlation between organisational and social capital sets
H3 Between public and private sector organisations there are significant variance in the means of the following variables: organisational engagement, training and development, organisational culture, career development, remuneration, English fluency, gender inequality, trust, social justice and wasta
Independent samples t test
Partially supported
The means of five variables were significantly different
H4 There are significant variances in the means between three sets of constructs, namely human, organisational and social capital, in organisations from each sector
Independent samples t test
Partially supported
Organisational capital was significantly different between sectors
H5 Human, organisational and social capital constructs for public and private sectors are independent
Chi-square Partially supported
Human capital was independent in both sectors
H6 The UAE national population differs between those in the public and private sectors in terms of educational attainment
Chi-square Supported Significant difference between sectors
H7 In terms of job title, there is difference between the populations of UAE nationals in the public and private sectors
Chi-square
Supported Significant difference between sectors
H8 There is a significant difference in years of experience between UAE nationals in the two sectors
Chi-square
Supported Significant difference between sectors
H9 There is a significant difference in age between UAE nationals in the two sectors Chi-square
Supported Significant difference between sectors
H10 There is a significant difference in gender between UAE nationals in the two sectors Chi-square
Rejected No significant difference between sectors
H11 In the public sector organisations education attainment is more require than the private sector organisations.
Mann-Whitney U Test Supported Significant difference exist between two sectors Cont.
Table 8.46: Summary of Hypothesis Testing
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248
(continued)
H12 After controlling for the demographic set of variables (gender, age, job title, and education) in public sector organisations, then for the social value set of variables [trust, gender inequality, social justice, and wasta (nepotism)], and the organisational value set of variables (organisational culture, career development, remuneration and English fluency, the unique variance in the human capital variable of organisational engagement is explained
Hierarchical regression Partially supported
Age, gender inequality, trust, organisational culture and career development were explained unique variance in the human capital variable of organisational engagement.
H13 After controlling for the demographic set of variables (gender, age, job title, and education) in public sector organisations, then for the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency)the unique variance in the human capital variable of training and development is explained
Hierarchical regression Partially supported
Gender, gender inequality and organisational culture were explained unique variance in the human capital variable of training and development.
H14 In the private sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) will explain unique variance in the human capital variable of organisational engagement
Hierarchical regression Partially supported
Trust, wasta, organisational culture and remuneration were explained unique variance in the human capital variable of organisational engagement.
H15 In the private sector organisations, after controlling for the demographic set of variables (gender, age, job title, and education), the social value set of variables (trust, gender inequality, social justice, and wasta (nepotism)), and the organisational value set of variables (organisational culture, career development, remuneration and English fluency) will explain unique variance in the human capital variable of training and development
Hierarchical regression Partially supported
Organisational culture and career development were explained unique variance in the human capital variable of training and development
.
8.6 Conclusion
To test hypotheses ultimately drawn from the research questions, hierarchical
regression analysis explored the relationships between the two dependent variables
(organisational engagement, and training and development) and 12 independent
variables. The results of hierarchical regression revealed that only five variables,
organisational culture, gender inequality, trust, age, and career development were
statistically significant predictors of organisational engagement as a dependent variable
in the public sector organisations. However, organisational culture, remuneration, trust
and wasta were statistically significant in the private sector organisations.
The result was quite different with training and development as the dependent
variable. In the final model, only three variables (organisational culture, gender
inequality and gender) were statistically significant predictors of the training and
development variable in the public sector organisations, while only two variables
(organisational culture and career development) were statistically significant predictors
of training and development in the private sector. In the next chapter these outcomes
are analysed and discussed in relation to previous research.
Independent samples t test results showed that there are five variables that
significantly differ between the public and private sectors: training and development,
career development, English fluency, gender inequality and trust. Chi-square results
demonstrated the significant differences in education level, job title, work experience
and age between the public and private sector organisations.
From the result of testing 15 hypotheses only one hypothesis was not supported
(H10), with the remainder either partially or completely supported. Pearson’s
correlation showed that the relationships between all variables of human, organisational
and social capital constructs were in the anticipated direction. Thus, employees and
organisations can obtain greater performance when the factors derived from the three
forms of capital are integrated. A positive correlation between human and
organisational capital variable sets was significant, supporting the results and a strong
substantiation of the effect of factors from capital theory on performance.
This chapter provides evidence from analysis of study data to produce findings
relating to barriers to Emirati employment. The remainder of the study is thus devoted
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to discussion of this evidence to draws its conclusions and recommendations on the
basis of the research questions.
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Chapter 9
Discussions, Recommendations and Conclusion
The United Arab Emirates is a country of contrasts with great social and
economic opportunities; and the challenge of youth employability. Within an
environment of a stable government with a market economy and in a few short
decades, UAE’s leaders placed the traditionalist country to the forefront of the world’s
economies. Perhaps no other country can achieve the economic, social and cultural
standards that UAE appears set to maintain for the foreseeable future.
This study explores UAE’s history, its environment, its resources and its
potential, to draw out the factors contributing to Emirati employability. In Chapter 2,
the social history of the country was presented, including its unique demographics, its
educational structures and Islamic practices, all of which impact Emirati
employability. Next, the uniqueness of UAE’s status was placed in context,
comparing the country’s admittedly thin employment statistics with those of the GCC
countries, and wider afield. Aspects of localisation were discussed, and then narrowed
into the UAE experience of continuing high birth rates, an overwhelming number of
non-nationals that permeate all business and public sector decision-making, and
Emiratisation.
The antecedents of this research are the grounds for Emiratisation, its policies
and strategies, its practices and their results, which bring to light the diffidence of the
non-national private sector. Previous and largely qualitative research on localisation
or Emiratisation is scattered over decades, countries, public or private sectors; and, as
with all research, anchored in the particular economic era of each paper. Nevertheless,
Chapter 5 drew from extant research, placing findings within capital theory and this
researcher embarked on a quest to identify barriers to Emiratisation from a holistic
and quantitative viewpoint. Both the employer and the employed, and the public and
the private sectors, were examined. From this pilot study of attitudes, experiences and
responses, a comprehensive questionnaire based on capital theory was structured,
translated, tested, distributed, and its data collected and analysed.
The results of the quantitative analysis of the data are described in Chapters 7
and 8, identifying factors under three constructs: human, organisational and social
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capital. It is the aim of this research to apply the framework and interactions of capital
theory underlying these constructs to explain the evidence of existing literature and
the findings of this study. The outcomes relate to Emiratisation by addressing barriers
to employability.
This final chapter places the preceding information, evidence and discussion in
context. Quantitative results from this data are related to comparative extant literature,
analysed, and possible resolutions, both strategic and practical, are proffered. The
limitations of this research, together with suggestions for future research directions
follow. The conclusion draws this thesis to a close.
9.1 Research Overview
This study’s aim is to identify structural, attitudinal, practical and perhaps
symbolic barriers to Emiratisation. By its nature, this holistic approach encompasses
all manner of factors, which may impinge on Emiratis’ employability, or the
government’s response to these factors, which is Emiratisation. To place this wide-
ranging quest into a structure, capital theory was selected because it encapsulates the
threads of society, economics, human attributes and interrelationships that lead to
employment. Further, UAE’s brief economic history and rapid expansion isolated the
public sector from the private sector and thus employment opportunities; a decade
ago, all Emiratis who graduated from tertiary or higher secondary education
automatically received public sector jobs as the social infrastructure of education,
health and defence were developed. Not so now. Although the economy is maturing,
the private sector continues expanding at 9.4 per cent (UAE Ministry of Economy
2007). Given that 45 per cent of Emiratis are under the age of 15 years (see Section
2.2.2), in theory the private sector should easily absorb graduates.
Data for this research was drawn from executives and Emiratis in both the
public and private sector organisations in Dubai. Seven organisations, two from the
public and five from the private sector participated in the study. The central
conceptualisations were
1. Identify factors impacting the employability of Dubai’s UAE nationals
2. Determine sector-specific differences for a given fact
3. Identify characteristics of Emiratis’ work attitudes
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4. Determine differences between UAE nationals and non-nationals work
attitudes.
The outcomes of analysis pertaining to these questions form the following four
sections.
The recommendations in the following sections are based on the literature
survey and empirical research carried out in this thesis, and aim to point the way
towards how Emiratisation may be enhanced. The recommendations are not assessed
against other criteria, such as current government policy preferences or economic cost
and impacts. Questions about the overall desirability or practicability of these
recommendations constitute the basis for further research, and in part reflect
judgements about the costs and benefits of Emiratisation, or the continuation of
current employment trends and their social consequences in UAE. These are matters
that lie outside the scope of this thesis; however, this research brings these questions
into clearer focus. Further empirical research is necessary to test these
recommendations, particularly employers’ attitudes toward Emiratis, and issues of
employee performance.
9.2 Research Question 1 Factors Influencing Emiratis’ Employability
The first research question addresses those aspects of UAE nationals’ social
and cultural environment that could influence their attitude to the workplace. Using
two constructs, organisational capital and social capital, analysis identified six
variables that influence UAE nationals’ employability. From an organisational
perspective, that is, variables of organisational capital; organisational culture,
remuneration and career development were the important factors affecting Emiratis’
decisions to enter or stay in employment. From a social perspective, that is, social
capital variables; trust, wasta, and gender inequality were contributing factors to an
Emirati’s work-readiness. Of the six variables, organisational culture primarily
increased organisational engagement, followed by trust, wasta, remuneration, gender
inequality and career development. For the connectivity between the variables, strong
and positive correlation occurred between organisational culture and trust (r=0.73),
organisational culture and career development (r=0.54) and organisational culture and
remuneration (r=0.52); the culture of the workplace is therefore subject to these three
variables to increase retention, satisfaction and higher participation of UAE nationals
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in the workforce. Transparent, performance-based recruitment and promotion
processes also assist existing employees, leading to greater organisational engagement
and job satisfaction. Organisational culture in these results was strongly associated
with organisational engagement, supporting reported findings (Chang & Lee 2007;
Mckinnon et al. 2003; Poznanski & Bline 1997).
This study confirms results of research in the GCC environment: Al-Rahimi
(1990) related employee productivity to organisational culture in Saudi Arabia, whilst
Baud & Mahgoub (2001) discovered that gender discrimination, allied to trust,
contributed to UAE women’s resignations.
Trust is a factor in the workplace; employees are more committed to the
organisation when team members exhibit mutual regard (Ferres et al. 2004; Joseph &
Winston 2005). To reduce wasta and increase trust, employers should use accepted
recruitment processes such as structured interviews and performance measures.
Emiratis’ trust in the fairness of the employment contract, and organisational
structures and processes, are indicators of their organisational engagement. Employers
have the legal and moral responsibility to offer fair working conditions and a
satisfactory workplace; this is repaid with greater productivity and an increased sense
of allegiance to the firm. Wasta (nepotism) in recruitment and promotion,
significantly and negatively impacts UAE nationals’ productivity. As a tradition of
Arab society, wasta negatively permeates business transactions, negating non-binding
government directives, HRM policies and thus acts as a wild card, disrupting
organisational strategy, planning and efficiency, as Ford and McLaughlin (1986)
describe nepotism. Whilst wasta is widely condemned in the GCC countries; the use
of key selection criteria, job interviews and panel selection processes is not universal;
employees are aware that recruitment and promotional opportunities in an
organisation are not necessarily restricted to the best candidates. These findings are
consistent with previous research (Hutchings & Weir 2006; Whiteoak et al. 2006).
Remuneration and career development significantly contribute to
organisational engagement. In the absence of a judicial arbitrator for employment
matters, the salary package in GCC countries encompasses a greater range of
conditions than that of an employment contract in more established economies, where
regulatory matters are enforced and considerable legal opinion accumulates. Private
sector remuneration in GCC countries is based on an employment contract, which
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besides cash arrangements, may or may not encompass hours of work, types of leave,
health and other insurances extended beyond the employee, non-cash incentives such
as housing, education and travel. There are restrictions on non-nationals’ employment,
such as an inability to change jobs mid-contract to protect the employers’ investment;
this may also apply to GCC citizens working outside their country. Localisation, or in
this case, Emiratisation, positively discriminates for nationals, allowing them some
surety in the employment contract and recourse to government employment
assistance. Nevertheless, the overwhelming number of non-nationals in UAE
workplaces negatively impacts the fortunes of the one or two nationals who may be
found in any given workplace. Career development for Emiratis could be considered
an oxymoron under these conditions. Whilst management, if not the owners, are term-
contracted expatriates, the time horizon is based on two to three year contracts, often
extended. Non-national employees cannot retire to live in GCC countries. The
turnover of staff in UAE organisations is therefore high, but without appropriate
statistics, unknown. As there are few UAE executives, and their personal situations
are at the mercy of the same conditions as the non-nationals, the chances of a defined
career path for Emiratis are slim. If an Emirati chooses a career path, then the national
must compete at a level commensurate with qualified and experienced candidates for
each step along the path. The significant relationship between remuneration, career
development and organisational engagement is supported by previous findings
(Adams 1965; Brockner & Betia 1996; Crosby 1976).
This relationship between pay and promotion prospects, and performance, is
an outcome of the economic growth rate in UAE. Money is the hallmark of
employment at this time, which feeds inflation, raises the cost of living for Emiratis
and non-nationals alike; however, employment in UAE private sector organisations
has not yet matured to exhibit the signs of longevity where working conditions are
known and a career can be planned with any degree of certainty.
Gender inequality in the workplace is significant to organisational engagement
as it impacts Emiratis’ perceptions of the fairness of the employer toward women.
Whilst Emirati women are well represented in tertiary education and perform better
academically than their male counterparts, social mores and traditionalism have long
influenced attitudes to women in the workplace. Women were expected to work in a
female occupation in a female workplace, thus their academic qualifications are
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largely in these craft and service fields. Single women work, but are expected to take
on a marriage and childbearing commitment in their twenties or younger. Married
women remain outside the job market for long childbearing periods, then find it
difficult to re-enter employment; taking up a previous career is rarely an option. These
are structural issues in gender discrimination that should be addressed as part of the
cultural changes taking place in the country. The result of this study is consistent with
Tanmia (2005) and Baud and Mahgoub (2001).
Factors influencing Emiratis’ decisions to seek jobs, or remain in a workplace
are therefore current and future salary prospects, trust in the employer’s goodwill and
its reverse aspect of wasta, and sex discrimination.
9.3 Research Question 2 Determine Sector-specific Factor Differences
Research for this question explored the differences between UAE nationals’
experiences and perceptions in public employment and private enterprises. The
findings are discussed under capital theory; human, organisational and social capital.
Sector–specific differences were found throughout. Of the two sectors, private sector
participants reported greater satisfaction with career attainments, training and
development, gender inequality and trust, but lower qualifications. Public sector
participants reported more qualifications, satisfactory remuneration and organisational
culture. These matters are discussed below.
9.3.1 Human Capital
Analysis of human capital variables at Section 7.2.2 established two prime
factors: organisational engagement, and training and development. Under the
organisational engagement construct, employees’ skills, experience, commitment and
emotional attachment to the workplace were considered important for employment
outcomes. Due to the median youthfulness of UAE nationals, variables of skills and
experience are expected to be adversely impacted; the aim of Emiratisation is to
overcome these widespread deficiencies through on the job training (Tharenou &
Cateora 1997). Indeed, given the rapid pace of the economy, job classifications
proliferate in the business and technology sectors where Emiratis rarely worked.
Higher education (professional careers) and vocational training programs (technical
support careers) should be directed toward the future employment opportunities now
emerging, so that Emiratis will be equipped to gain the necessary experience to take
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up their birthrights. If they are marginalised by poor preparation for the workplace,
and lack of experience in their career choice, Emiratis can have little commitment to
their employer, despite the probability of enjoying a good workplace relationship with
team members. Nevertheless, nationals face underlying constraints of social
dislocation, use of English in the workplace, and the private sector’s indifference to
other than profit targets.
There was a significant difference in mean scores between the public and
private sector organisations with respect to training and development [M=2.52
(public), M=2.33 (private)]. The higher mean values for the public sector are biased
towards disagreement, that the employers do not offer sufficient training, whilst firms
in the private sector organisations offer satisfactory levels of training to nationals, and
assist employee development. This finding is in contrast to previous research, where
UAE firms resist training Emiratis because of issues in retaining their services; or that
a qualified non-national could be hired and thus avoid the cost of training an Emirati
(Abdelkarim & Ibrahim 2001; Wilkins 2001). Human capital research has long
advocated for training and development (Bank 1999; Beardwell & Holden 1997).
However, the introductory comment regarding timing of research in a volatile
environment applies. As international firms become established as true branch offices
(or are headquartered) in UAE, and local firms expand beyond small enterprises,
corporate structures are established offering policies and programs reflecting the ethos
of the parent organisation; then dedicated training facilities appear. Whilst the
intention is to achieve corporate goals efficiently and raise productivity, the aim is
also to increase training and development opportunities for employee stakeholders,
such as encouraging further education, traineeships and mentoring programs (Losyk
1997).
As noted, public sector UAE national employees were less satisfied with their
training and developing opportunities. The connotations from this unexpected result,
given the excellent working conditions of the sector, may be an outcome of the now
diminishing decades of absorption of all graduates into public employment. Arguably,
public organisations had high training profiles to bring their employees to a level
whereby they could communicate efficiently with their counterparts in the GCC and
elsewhere. As recruitment declined for the sector, so the need for intensive training
followed as the staff profile aged and employees became more experienced. Thus, the
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quantity of training, which was not a part of this survey, possibly decreased in the
public sector from a fairly recent high point and in the private sector increased, as
discussed above, as that sector expands and matures. It should be also noted that best
practice employer organisations from the private sector were selected for this survey,
which may not reflect the general business community. The results of this analysis are
strengthened by Abdelkarim and Ibrahim (2001) who confirm Emiratis’ public sector
preferences partly due to better training and development.
From a human capital perspective, public sector organisations should align with
UAE national goals and commit to their employees’ continuing development (Dodd-
McCue & Wright 1996; Wan 2007, Holland & De Cieri 2006). There are many
international examples where the public sector takes on a training role through social
services and management employment programs to enable public sector employees to
transfer to a senior role in the private sector. As a HRM strategy, such programs
provide very many graduates a range of career development opportunities, training
options, feedback on performance, career counselling and access to innovative
rewards systems, tailored to meet both organisational goals, and actively assist UAE
national employees (Brousseau et al. 1996).
Because they are infrequently corporatised, public service departments and
public sector entities cannot respond to public criticism as readily as can private sector
corporations, which face continual reporting and audit obligations and are better
prepared. There are a number of private sector HRM strategies that public
organisations can emulate to ensure that job specifications and key performance
criteria are benchmarked against similar private sector jobs. There are very few public
service positions that do not have a counterpart in the private sector. In the case of the
GCC countries once the positions are defined, the numbers of such employees in each
category, level or workplace can be compared to determine best practice in the region.
Emiratis in these job descriptors, or in disciplines such as finance, architecture and
HRM, can then be target trained to achieve best practice, adding salary rises or
bonuses as reward for educational levels achieved, rather than years of experience
(Noe 2008).
TANMIA is placed to monitor education, training and experience gained by
Emiratis as they change employment. Emiratis could update their CVs on a database
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similar to a job-seeking site to access details on public organisations skills shortages
and training on offer for a particular discipline.
Analysis for this research revealed a significant difference in education levels
between the sectors. Whilst two-thirds of public sector UAE nationals possess at least
a bachelor’s degree (66.7%), less than half the private sectors Emiratis (45%) have
such qualifications. Factors contributing to this result include the attractions of
superior working conditions in government employ: salary, superannuation, social
security insurance, further educational opportunities, working hours and a better
working environment. This finding is consistent with outcomes from prior studies
(Tanmia 2004; Freek 2004; Al-Dosary 2004; Al-Lamki 1998). This Emirati attraction
to the public sector is arguably a factor in the proportions of its graduate employees:
competition raises the entry qualifications and perhaps over-qualifies candidates for
the job, leading to frustration and disengagement.
By recruiting less-qualified nationals, private employers may limit the number
of Emiratis who can reach higher management and executive levels, thus denying the
goal Emiratisation is set to deliver. Whilst reaching for Emiratisation quotas, private
employers either recruit for low profile positions, or they are taking on graduates for
which they must undertake further training and job experience responsibilities and
who they cannot easily remove (Fernandes & Awamleh 2006; Al-Dosary 2004).
Earlier, Alghafis (1992) found a mismatch between private sector skills
requirements and the skills of Emirates University graduates. Comprehensive and
universal education systems in the GCC countries were first established in the 1970s,
and the first priorities were to raise standards of numeracy and literacy in the
populations, particularly among adults. Education is free in GCC government schools,
colleges and universities and, with high birth rates and non-national children numbers,
the next priorities were to maintain the rate of establishment of sufficient staffed
facilities. In recent years, attention turned to quality issues: the relevance and
standards of curricula, educational styles based on enquiry and problem solving, up to
date resources and equipment (Al-Yousif 2005; Girgis 2002). Personal choice is also a
factor; educational preferences for girls, as noted, centred on arts qualifications, whilst
boys eschewed ‘technical’ careers in the sorely-needed fields of engineering and
science. Management is not a high priority among Emiratis.
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Thus, a major policy recommendation is that the UAE needs to redirect its
emerging education system. New priorities should target job-ready courses by
streaming career paths through secondary school and colleges and, as this education is
free, either limiting entry to low job opportunity courses, or redirecting arts curricula
into work skills, such as English fluency, media or marketing (Al-Lamki 2000). The
following initiatives from previous research are endorsed:
• Based on dialogue with the private sector regarding future skills
requirements, curricula throughout a child’s education should be streamed
toward work-readiness (see Section 5.6.4, Tanmia 2004; Freek 2004)
• Classroom performance standards for pupils to reflect current educational
practices of enquiry and problem-solving, rather than memorising text
(Section 2.3.1)
• The Higher College of Technology and other UAE tertiary institutions offer
apprenticeships through integrated vocational education and technical
training (British Nationals Vocational qualifications, German model ‘dual
system’, Australian traineeships and apprenticeships) (see Section 3.2.4,
Section 4.1.3)
• As part of the dialogue between educational authorities and private industry
curricula from late secondary school through all tertiary education, career
paths should incorporate regular work experience provided by private
employers (Lopez et al. 2005, see Section 3.5.3)
• Mindful of wasta, scholarships to best practice educational institutions
should be readily available to UAE candidates who reach the entry
requirements of such institutions, to ensure UAE continues to receive
current valid information, knowledge and direction (see Section 4.12 and
Section 4.1.4)
Human capital accumulation, as discussed at Section 4.1, comprises knowledge,
experience and skills gained through formal education and job experience, and further
training allied to the job. For UAE nationals, individualism is related to social
standing, status, in the family networks more so than performance rewards through
employment. The theory of accumulated human capital as a resource for the country
to exploit in economic growth is not universal in an Arab environment, as it is
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subjugated from an economic goal to one of status. Employers are not primary
stakeholders to the individual-national pact of human capital objectives and thus have
a subsidiary role between the individual and the state in the acquisition and
expenditure of human knowledge. This is not the aim of Emiratisation, and is a social
phenomenon that over time will be redirected through education and society evolution
to economic capital goals.
9.3.2 Organisational Capital
From the analysis, four factors impinge on organisational capital: organisational
culture, career development, remuneration and English fluency. Career development
exhibited a difference in means between the sectors; [M=2.27(public), M=2.12
(private)] as did English fluency [M=3.72 (public), M=3.53 (private)].
The results for career development show that employees in private employment
are more satisfied with career achievement and develop new skills. This finding
agrees with previous researchers that career development increases organisational
engagement and job satisfaction (Chen et al. 2004; Wayne et al. 1997). It does not
confirm recent findings of Freek (2004) and prior research by Al-Lamki (1998) that
UAE nationals leave private sector jobs through lack of career development
opportunities and low remuneration levels. To guide career-minded Emiratis,
researchers suggest centralised or employer-targeted management of their training and
work experience, including funded Emirati career plans linked to the Emiratisation
quota decrees (Fryxell et al. 2004; Prince 2005; Baruch & Peiperl 2000; Freek 2004).
Career development is inherently complex (Section 4.3.4), as it depends on an
individual’s attributes, job or profession preferences and expectations, job
opportunities at various stages in life, economic conditions and the market for
particular skills. Evolution of the profession is an issue, as technology and practices
change so that disciplines such as IT or engineering splinter in many directions.
There are debates over the best way to develop professionals. For example, in
Australia the University of Melbourne has broken with established British and
Australian practise, and moved toward the European and North American approach.
From 2007, it will stream undergraduate students into
six broad undergraduate programs followed by a professional graduate degree, research higher degree or entry directly into employment. The emphasis on academic breadth as well as disciplinary depth in the new degrees ensures
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the capacity (for a student) to negotiate the way successfully in a world where knowledge boundaries are shifting and reforming to create new frontiers and challenges almost daily (University of Melbourne 2007).
Individuals mature, gain life experience and their career aspirations change.
Professions change, as the Melbourne Model is designed to address.
Emirati employees in this study were concerned for their careers, but the
quantitative study was not in a position to probe their reasoning, which arguably
ranged from inability to find a job in their chosen career to a blocked career path. The
volatility of the job market demands that Emiratis, like other workers, undertake
lifelong learning to either maintain parity with new graduates’ knowledge, or to
change career direction. There is little evidence to expect that employers will accede
to either of these requests, other than negotiating an employment contract including
further training. Lifelong learning for graduates is a factor of their previous training
and thus a responsibility of their university or tertiary institution.
The results of this research stress the importance placed on English language
proficiency by the private sector (Section 4.3.4), and this corresponds to prior studies
(Abdelkarim 2001b; Al-Lamki 1998). The UAE standardises English as a second
language from the mid-years of schooling, nevertheless there is a great difference
between this conversational English and the technical English of professional
disciplines. Further, curricula subjects taught in Arabic from paper-based resources
are frequently dated, due to the time factor for translation and reprinting, and Arabic-
speaking students lack the diversity of sources of paper products that native English-
speakers can access. Further, the increasing importance of on-line education, again
predominantly English, requires that screen-based learning slowly dominates many
tertiary curricula.
Whilst the study of English deepens and becomes more important for Emirati
students, those now in the workforce have other language impediments besides
fluency. Language is an element in the preference of nationals for the public service,
where Arabic is widely used (Abdelkarim 2001b). For Emiratis, the corporate
workplace culture and multinational work teams raise issues of foreign accents,
colloquialisms and terminology; and the lack of an inherent ability to communicate
impedes UAE nationals’ work performances and involves others’ valuable time in
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explanations. This in turn impacts Emiratis’ promotional possibilities and ability to
transfer to other jobs within the organisation, or to another employer.
English is the lingua franca of business. Whilst translation devices are becoming
more sophisticated and will presumably become instantaneous translators, they will
not replace personal communication. This research, in agreement with the majority of
past researchers, finds the language barrier of insufficient English fluency of prime
significance to Emiratisation. Recommendations supporting previous theorists are
therefore set out as follows.
• Promotion of English as a second language is intensifying in the GCC
countries; however, as a skill leading toward employment it is a human
capital variable for which agencies could consider offering remedial
English to unemployed Emiratis (see Sections 3.5.2, 2.1, 2.5, 2.6, 3.6.2,
3.2.3)
• For Emirati adults in employment, training facilitators can enhance career
development by leading groups through practice business meetings,
technical discipline discussions and social gatherings, to follow and
understand the verbal structures and developing themes that arise in the
various situation (see Sections 4.1.4, 3.2.3, 3.2.4).
Organisational capital has different connotations in UAE, which is a newer,
maturing economy. Corporations are recent, usually local majority owned, yet
managed and operated by foreign staff. UAE boasts an open market for
entrepreneurs and a good employment environment protective of employees’ rights;
this does not refer to an open door approach to all non-nationals. Organisational
capital is fundamentally the sum total of capital resources of the corporation:
finance, human and physical, and the supporting infrastructure and market
environment it operates within. Like human capital, organisational capital
accumulates within the organisation and is expended to the benefit of all its
stakeholders comprising owners and employees, customers and suppliers,
government and society.
UAE organisations do not yet accumulate long-term organisational capital.
Because of their newness, organisational capital is not accumulated in depth, rather,
its current model is a one-directional rapid accumulation of profit. Finance, human
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and physical resources are infinitely replaceable in this model; in manufacturing
terms, it is industry on wheels.
In this case, like the divergence evidenced by human capital, this is not quite
the outcome expected. UAE attracts enterprises for rapid industrialisation to
establish a stable economy where the benefits of production and services are spread
widely to support its citizens, and its transitory, changing population.
Organisational capital presupposes the slow build up of long-term assets, internal
and external relationships, and the continued accretion of wealth. Organisational
capital, from a national viewpoint, relates to the accumulating wealth of enterprises
that contribute to the economy. If organisations do not contribute through taxes,
then they contribute through national employment and supply and expend on the
local market. Like human capital outcomes, this expected outcome is also
subjugated by the expatriation of wages, high imports, low added-value exports,
and rare Emirati employment. Thus, organisation capital goals between employee
and employer, and employer and state, are not yet operational. Employers, Emirati
and non-nationals are not evidencing commitment to UAE goals, nor to
Emiratisation.
9.3.3 Social Capital
Social capital is the third construct that holds influence for an Emiratisation
program. Gender inequality, trust, social justice and wasta (nepotism) are social
capital factors, of which two, gender inequality [M= 3.35 (public), M=3.22 (private)]
and trust [M=2.71(public), M=2.58 (private)] displayed statistically significant
differences between the sectors. Private sector employees perceived less
differentiation between men and women in matters of salary, position status and
career development. Respondents expressed satisfaction in private organisations’
policies and practices for career development, training opportunities, transfer and
promotional opportunities, and reported that their organisation practised equal
opportunity for women recruited as on-going employees. In contrast, respondents
from public organisations were less satisfied with training and development
opportunities for women, job status and the salary discrimination referred to in
Section 9.4.
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The private sector results, thus the combined results from this study are not
consistent with entrenched UAE sex discrimination found by researchers (Adam
2003; Al-Lamki 1999; Baud & Mahgoub 2001). Bahraini women similarly face this
overt discrimination: there are no HRM equal opportunity policies to encourage
female work participation (Metcalfe 2007). Despite the response from private sector
participants, taken in context of the GCC countries social mores, the clear findings of
this study are that whilst UAE men and women are decreed equal educational and
employment rights, in practice discrimination against women exist in all
organisations. The response from the private sector respondents is thus a matter of
degree. Legislation by itself, without social and cultural support, does not address this
aspect of social capital; half of Emiratis are not subject to the same privileges the
other half expect.
Social capital factors are many-faceted and complex. Gender discrimination is
widespread and is based on sometimes well-meaning assumptions about the role of
women in society (see Section 4.2.3). These assumptions have long been proven
futile, discriminatory and prevent women taking up full citizenship in their own
country. Discrimination principles and practice are extremely effective in hindering
social, human and economic development. In UAE’s case, the outstanding example of
economic impact is the number of Emirati females unable to contribute to their
country’s development despite their supremacy in tertiary education. UAE cannot
afford one luxury, that of discrimination, as remarked Information and Insights on
Middle East Development (2002), who did not want to be a member of a population
that constituted one per cent of his own country, as extreme marginalisation of
indigenous people leads to loss of hegemony. High birth rates will not achieve Emirati
resurgence against a continual influx of non-nationals, women in the workforce will
counter the inflow by taking the jobs first.
Thus, to change conservative Arabs’ perceptions of women in work requires
strategies, decrees, and enforcement of women’s rights. Emiratisation, as a form of
affirmative action, should first be directed to assisting women in jobs, through
appropriate education (private sector health, education, management); advocacy,
arbitration and judicial support structures; positive discrimination in the public sector;
flexible work arrangements to balance work and family life; and social and practical
support for working women who are carers. There is a need to question underlying
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assumptions about the division of work, and an analysis and report on the systemic
organisational barriers is necessary for UAE women’s advancement. Further, a
network of support structures where women professionals and managers can interact
and build their careers should be officially encouraged and supported. This finding is
consistent with previous research that women’s promotions are not accompanied by
the same increase in managerial rank as their male counterparts (Kirchmeyer 1999;
Powell 1993). Regardless of their rates of promotion UAE males attain higher
management levels than UAE females (Kirchmeyer 1999; Sturges 1999).
Within the theoretical construct of the GCC social capital environment, the
results of this research were that the private sector group were less concerned
regarding gender discrimination. Yet Adam (2003) reported that, by decree, a UAE
woman cannot earn more than a man; however, this dictum was widely ignored by
non-national employers. There is little hope for public sector reform if there is
entrenched and overt discrimination in the social structure of the UAE, whether it is
practiced or not. It is incumbent on the public service leaders to advocate for removal
of outdated and dysfunctional bias from a prosperous social framework when,
paradoxically, they are intent on Emiratisation. Whilst systemic bias and overt barriers
are raised against women’s participation in the workforce, UAE cannot be expected to
take its place among the world’s enlightened societies.
Recommendations for positive discrimination in UAE public organisations to
remove barriers to women’s advancement in leadership roles follow
• To comply with UN Convention on the Elimination of All Forms of
Discrimination against Women (CEDAW), ratified by UAE in 2004, remove
all discriminatory decrees and undertake steps to actively promote equal
opportunity (see Sections 2.2.1, 3.4.2, 4.2.3, 5.6.9)
• In further compliance with CEDAW, establish a tripartite organisation,
which advocates for women’s rights in society, including health and
childbearing; actively pursues gender awareness and equal opportunity for
women in employment, and has a judicial function with powers to
implement its decisions (Australian model, Section 4.2.3).
The social capital theory of bonding is apt for GCC countries (Putnam 2000).
Strong family and tribal ties extend across borders and through social and business
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transactions, wasta as an example. Yet the resources accumulated by society of
population, history, government, traditions, purpose, relationships and wealth,
encapsulate human, organisational and social capital and draw a parameter that is an
entity. Social capital is the strength gained from human relationships and expended to
the benefit of its citizens, and in this case, the remainder of the population. Social
capital provides a framework or structure to informal society, balancing governance
and social services, and assisting environment and lifestyle. The rate of return on this
investment in social capital can be much higher than investment in any other
economic activity, as distributive relationships may establish forms of interpersonal
obligations that are permanent and cannot easily be discharged. Thus, social capital
both strengthens society’s assets through family and trust, and weakens society
through discrimination and wasta. Bridging ties of greater communication between
secondary and tertiary stakeholders to UAE, common goals and a wider form of trust
are necessary to release the accumulated, largely bonding social capital of Emiratis.
9.4 Research Question 3 Characteristics of Emiratis’ Work Attitudes
Analysis of perceptions of public sector participants revealed that five variables,
organisational culture (β=.573), trust (β=.139), career development (β=.087), age (β=-
.100) and gender inequality (β=-.124), were statistically significant predictors of
unique variation and explained such variation in UAE nationals’ engagement with
their organisations. An increase in any of these five variables results in increases in
organisational engagement; an increase of one grade point of organisational culture,
trust and career development results in an average increase of at least b=.582, b=.112
and b=.093 respectively in organisational engagement. Findings of this research are
that increasingly positive perceptions by public sector employees of organisational
culture, trust and career advancement produce greater levels of engagement within
their organisations. Findings also show that a decease of one grade point of gender
inequality in terms of the adverse perceptions of discrimination against women
employees salaries and job descriptions results in an average increase of at least b= -
.125 in public sector organisational engagement.
The following subsections discuss organisational culture, trust, age and other
characteristics pertinent to organisational engagement, training and development and
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wasta. Career development and discrimination were discussed at Section 9.3.2 and
Section 9.3.3 respectively.
9.4.1 Organisational Culture
Views of private sector employees who were participants in this study resulted in
different priorities for the variables. Organisational culture (β=.610), remuneration
(β=.116), trust (β=.112) and wasta (β=-.122) were statistically significant predictors
of unique variation and explained variation in organisational engagement, thus an
increase in any of these four variables results in increases in organisational
engagement. This suggests that an increase of one grade point of organisational
culture (b=.599), remuneration (b= .076) and trust (b=.091) will result in increase in
organisational engagement. Employees with improvements in organisational culture,
rewards and are more trusted reciprocate with productivity. The result also shows that
a decrease of one grade point of wasta results in an average increase of at least (b=-
.077) in private sector organisational engagement. The findings of this study is that
organisational culture is the prime variable that explains variation in the Emirati
employees’ engagement in both sectors, and thus is of significance to both decision
makers and employers who embrace Emiratisation.
Analysis of organisational culture for private employers (β=.610) explained
greater unique variance in organisational engagement compared to that for the public
employers (β=.573); the private sector organisational culture contributed more than
the public sectors. Noting, however, that quality private sector organisations were
selected for this study, the difference between the sectors is not substantial. The
culture in the public sector, as discussed (see Section 4.3.5), is more amenable to
Arabic sensitivities, respecting religious and traditional observances, comprising
reduced working hours and appropriate shifts, full weekends and holidays, and
generous remuneration packages. Arabic is used in the public sector to a greater
extent, so that communication is easier, financial content (interest and financial
mechanisms) is minimised, conflicts are resolved, employees are apprised of
organisational information; policies are applied satisfactorily and there are good
physical working conditions.
Private sector employers were criticised by the participants on communication
factors, including updating corporate information and dispute resolution. This is
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consistent with previous findings relating to the propensity for UAE’s private
corporations to adopt a simple remuneration-driven and dictatorial management style
in preference to creating a team-based performance corporate culture (Abdelkarim
2001; Freek 2004; Van der Post et al. 1998). Indeed, this study’s results arguably
detect a maturation in the UAE; although reliant on transitory workers, the emergence
of a services sector from the largely construction based economy brings into play a
dynamic and progressive workplace. Although attracted to UAE by salary levels,
transitory workers, once in their jobs, nevertheless expect workplace norms
commensurate with established economies. These norms included constant
communication throughout the organisation, project team work using a leader instead
of management layers, timely decision making and a congenial working environment
to minimise disruption. As the public sector workplace is bounded somewhat by
language and culture due to its higher national workforce, its working environment
norms differ. Factors of greater importance to its employees are those based on
standards of living, status, and maintaining traditional and religious observances
external to the workplace. Thus, private sector employment principles are driven by a
triennial timeframe of remuneration and expatriate norms; the public sector
employment principles are driven by life employment for livelihood and status, and
work and life balance.
These differing themes for the UAE economy may be viewed as an early stage in
its development, and a point where timely intervention can prevent future dislocation
and hardship. The ESCWA publication, Responding to Globalization: skill formation
and unemployment reduction policies (2003 p.38) recommends that the GCC
countries, and UAE specifically:
incorporate the goals of steering the economy towards capital-intensive investments that eventually eliminate many of the jobs that require few skills, improving economic growth levels and generating levels of productivity that warrant the payment of wages that meet the aspirations of the national labour force.
To alleviate these disconnects, and embrace Emiratisation (Section 3.6) the
following initiatives may promote growth of social capital in UAE.
• Establish a directional committee to facilitate a structured exchange of
Emirati employees with key disciplines between the sectors. Whilst retaining
their conditions and salaries, these key employees can disseminate timely
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information, skills and strategies from sector to sector. They also introduce
their sector’s work culture, removing misconceptions and promoting
adoption of good practices throughout. The issue of poaching such valued
workers is offset by the prospect of Emiratis in new workplaces, thus
promoting Emiratisation (hypothesis 11)).
• To alleviate the possibility of a future UAE society divided by employability,
remove guaranteed employment in the public sector, using time-based
contracts to promote job mobility between the sectors (hypothesis 8).
• Although 93 per cent of participants in this study were aged between 20 and
40 years, employees over 45 years in both sectors should be offered part
time project and mentoring work, with public sector employees’ pensions
retained at full time levels. New staff hired to replace them are placed on
five or ten year contracts for work experience and to assist in establishing
their careers (hypothesis 9).
• Superannuation should be available to all Emiratis, managed by one
organisation for both sectors, and contributions made by all employers (5%
of salary) and national employees (percentage based on age). Health
insurance could be treated similarly, as is now occurring in Saudi Arabia.
Contributions replace increases in quota-based fees and universal
superannuation (and insurance) removes a major remuneration barrier
between the sectors (Author, following finding from hypothesis15).
• Younger Emiratis’ expectations are coloured by the overwhelming presence
of expatriates, and thus the qualifications, work skills and experience which
won the contractual position is lost in the numbers of workers who arrive.
Arabic mores demand that they, too, are suitable for these positions. These
expectations should be supported at secondary school where, as
recommended, expatriate corporate agents instruct children regarding their
life choices in careers (hypotheses 1, 2 and 3).
• For those Emiratis whose qualifications and experience were insufficient to
gain a career, greater determination is required to prevent them becoming
long-term unemployed. Ongoing programs that operate until the person is
placed are necessary to prevent future financial distress and possibly
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groups of perennially unemployed. Minimal salaries on this program,
accessible by all underemployed Emiratis assist them to remain with the
program, which could be tied into gender-based programs (Author,
following Al Mansouri, Minister of Governmental Sector Development
2007: hypotheses 1, 2 and 3).
9.4.2 Trust
Participants in the private sector expected management to take regard of their
future career prospects, that their employers keep to agreed commitments, and that
they maintain good relations with their employees. This finding concurs with research
by Peters and Waterman (1982), who state that trust is the key for employee-oriented
strategies of successful organisations. From a UAE view, Tanmia (2004) reported
differently; that private employers were distrustful of Emiratis’ claims of proficiency
in the job, a position supported by Freek (2004). In this study, public sector
participants found that managers were less willing to delegate responsibility and
followed dictatorial human relations policies; this supports previous findings of that a
lack of trust can lead to dysfunctional outcomes and reduced confidence in the
organisation (Kanter & Mirvis 1989; Matthai 1989; Aryee et al. 2002). Overall, the
results are in line with previous research that has consistently underscored the value of
trust between employees, organisations and societies (Putnam 1993; Fukayama 1995).
As a factor of social capital, trust, however defined, is a dialogue forged by
status, kinship or contract. Each holder of trust is aware that it infers stated and
unstated responsibilities and rights. Prior research findings on trust concepts in the
employment contract generally consider either manager-employee relationships from
a line management responsibility or organisational policies as a HRM responsibility.
Trust is a vexatious concept; on one hand it is an underlying structure that supports all
social interaction; on the other it is an open-ended, measureless, responsibility. The
employment contract is arguably placed on this trust continuum, a responsibility, but
not infinite. In previous research, Emiratis (Freek 2004; Abdelkarim 2001b; Tanmia
2004) are considered by their expatriate private employers as skills-deficient when
they are asked to take the initiative; yet they are subjected to rigid conformity by their
public employers who do not condone initiative.
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The absence of employers’ trust in UAE nationals again relates to the pace of
change in the country. Education and training is arguably the prime factor in
employment, and comprehensive education in UAE is a relatively new phenomenon
that is still developing. In this research, however, private sector participants reported
that they were satisfied with the level of trust evidenced by their employers; this
implies that they fulfil expected performance levels, and fit satisfactorily into work
teams. On the trust continuum, they have achieved a duality of trusting, and being
trusted. Whilst previous research showed no evidence of such private sector trust, it
did show rigidity and deficient levels of trust in the public sphere, which is confirmed
by these findings. Thus, there is evidence of emerging trust of Emirati employees by
their employers, which may be again tested by future research.
Using this evidence and extrapolating from prior research through identifying
issues (Section 4.1.2) and addressing these with examples of good practice (US, UK),
the following recommendations are made
• Establish a tripartite board comprising private and public employers’
associations and private and public education providers to determine future
directions for specified professions, para professions and trades in UAE;
board directs organisations in provider standards and work readiness
levels, employers commit to provide annual work experience and intake
levels, and experienced resources for educational workshops and career
days (Author, following Al Bawaba quoting UAE Minister for Labour,
2007: hypotheses 1, 2 and 3).
• Establish a working conditions organisation to set minimum working
conditions for all employees in specified professions, para professions and
trades in accordance with ILO Conventions (Author following report in Al
Bawaba 2007)
• Establish a conciliation and arbitration commission to manage employee
and employer complaints in accordance with UAE adherence to ILO
Conventions (Zalameh, 2006)
• Use the tripartite board to negotiate lifelong learning provision by
universities and trades schools within employers’ facilities to transfer
current practices to universities and research to employers (Al Bawaba
2007).
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• Based on lifelong learning, use the tripartite board to establish Emirati
mentoring network through employers and education providers to draw
Emiratis through skills and leadership levels (see Section 3.6).
9.4.3 Wasta
Wasta (nepotism) was the second explained unique variation in the private
sector, with a majority of employees experiencing incidents of wasta in obtaining a
job or promotion. Wasta is a major factor in Emirati turnover in the private sector, and
reflects the paucity of jobs available to Emiratis through their reduced employability.
It is also an indicator that appropriate and transparent hiring practices in corporations
are not followed for Emiratis, reducing employees’ engagement with the organisation
and severely and adversely impacting Emiratisation. This finding agrees with recent
literature on wasta, that as the family is paramount, Arabs rely on their strong network
connections for social and business purposes (Hutchings & Weir 2006; Metcalfe
2007; Whiteoak et al. 2006).
There are other factors in contention in UAE workplaces. In the larger
established economies, private sector organisations are generally owned publicly with
a published share register, and the influence of majority shareholders is muted by the
scrutiny of minor shareholders and the stock exchange. Private organisations in UAE
are not yet granted foreign majority ownership, paradoxically, few Emiratis work in
the sector, preferring public employment. The Emiratisation program is therefore
subject to Emirati owner or major shareholder influence, as well as its decrees and
organisational HRM policies. In such a culture, wasta can be practised with impunity.
The following recommendations are made to minimise the impact of wasta
(see Section 4.2.4)
• Amend the Companies Law to allow foreign majority ownership of UAE’s
organisations whilst maintaining Emiratisation programs (Lubna Al
Qasimi, Minister of the Economy, 2007.)
• Establish an arbitration organisation with the powers to investigate and
manage complaints of wasta; including demanding evidence of
transparent recruitment and promotion practices from all employers. This
organisation also undertakes awareness campaigns to alert citizens
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against wasta, and publishes proven wasta incidents and their outcomes
(see Section 4.2.4).
9.4.4 Remuneration
Salary and some working conditions, given that conditions in UAE differ to
those of established countries, and that conditions in the two sectors also refer to a
different base. However, the Labour Law governs all employment, restricting overall
hours of work. Some industries have a five and a half day week and nine hour days,
working on a split shift system (see Section 3.2.3). For non-national workers who are
in the country for a few years, this arrangement is simply extra money. These
employees have little incentive for leisure or lifestyle in UAE, with commitments in
their home countries. For UAE nationals, patterns of working hours and insufficient
holidays are an issue in continuing their employment. Cash salaries must be sufficient
for one-income extended families, with inflated rents from new developments in
coastal cities like Dubai and Abu Dhabi. Remuneration therefore includes cash,
incentives, and some working conditions, including promotion prospects.
In this analysis, private sector remuneration explained unique variance in
organisational engagement in terms of satisfaction and commitment, so that a good
salary package is highly desirable to UAE nationals and leads to organisational
engagement. This accords with research by Miceli & Mulvey (2000) who found that
the importance of pay satisfaction lies in its association with a number of
‘downstream’ attitudes such as organisation citizenship behaviour, organisation
commitment (Kessler & Heron 2006) and, with reference to this study, ‘quit’ rates
(Heneman 1999). However, despite the quality awards of the private sector
organisations in this sample, remuneration remains an issue for the study participants.
This implies that either all employees are dissatisfied with the tax-free salary-based
remuneration packages structured for transitional workers, unattractive to nationals
who have the capacity to be long-term employees; or that Emiratis have unrealistic
expectations from the generous remuneration of the public sector (Tanmia 2004;
Freek 2004; Al-Dosary 2004; Al-Lamki 1998). This dichotomy again arises: that the
Emirati-controlled private sector is not showing leadership by employing their
citizens; non-nationals are preferred.
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The recommendations of this study for remuneration relief are consistent with
those for previous research questions (see Sections 5.6, 3.2.3, 3.6.1, 4.1, 4.2.3, 4.3.4)
• Public sector remuneration and working conditions are frozen until they
reach at least market value with private sector task-related and
responsibility-related job descriptions (Chilton, 2007)
• Based on ILO conventions, a working conditions and pay commission
establishes base rates across UAE business sectors for these jobs, premiums
paid upon defined performance levels based on these tasks and
responsibilities (Al Bawaba 2007)
• The Labour Law is modified to encourage part time work and flexible
working hours, initially for defined positions and for those with family
responsibilities; a complaints commission to be set up to adjudicate
(Abdurrab 2007)
• Key job description holders (disciplines) are transferred between the
sectors to impart current knowledge for each (hypothesis 11)
• Those whose working income is below a certain level defined by the pay
commission are temporarily paid by the commission to reach that level,
together with an education or training program to reach the defined level
(Al Bawaba 2007).
9.4.5 Training and Development
Analysis of responses for public sector participants showed three variables,
organisational culture (β=.550), gender inequality (β=-.104) and gender differentiation
(β=-.123) that were statistically significant predictors of and explained unique
variation in the UAE nationals’ engagement with their organisations. Organisational
culture in this study is the strongest unique contributor for employees to gain access to
training and development. An increase of one grade point of organisational culture results in
an average increase of at least (b=.748) in training and development. The analysis shows that
an amenable organisational culture is a strong indicator for delivery of further training and
development. The (β) values for gender inequality and gender differentiation show that
a decrease in either results in increases in training and development; a decrease of one
grade point of gender inequality and gender balance in the workplace in remuneration
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and job discrimination results in an average increase of at least (b=-.222) and (b=-
.140) respectively in training and development in the public sector
Gender inequality negatively affected training and development. Male and
female public sector participants reported that gender was a factor in training and
development that UAE female employees had fewer opportunities for training and
development. The UAE has no professional associations where women can network, a
traditionalist society that supports women’s career aspirations by decree; whilst
paradoxically maintaining decrees of gender salary status and segregation that
nullifies any possible advancement. The findings of this are that public sector women
face overt discrimination in training and development, have less role models, less
management training programs, and are conditioned to shun affirmative action. These
findings correspond with those of Adam (2003), who found that the opportunities for
training and career progression are limited and very slow and this has impacted UAE
women’s contributions in the workforce. The policies towards gender inequality are
discussed at Section 9.3.3.
Gender was explained as the third variation after organisational culture in
UAE nationals’ engagement with their public organisations, although gender was an
insignificant variable in private organisations. Whilst men and women have similar
employment opportunities in corporations, participants reported discrimination in
HRM policies and programs in the public sector. This is an unexpected result,
inconsistent with Baud & Mahgoub (2001) and Freek (2004) who found the main
reason women left the previous job was a low salary and obtaining a higher position
in the private sector.
In contrast, in the private organisations, only organisational culture (β=.595)
and career development (β=.171) were statistically significant predictors of unique
variation and explained unique variation in training and development. These
findings confirm once again that organisational culture is the primary variable for
Emirati engagement. Results also revealed that organisational culture (β= .595)
explained greater unique variance in training and development in the private sector
compared to public sector (β=.550); the private sector organisational culture
contributed more than the public sectors. That means the private sector
organisational culture is better compared to the public sectors. Therefore, the results
suggest that private sector employers communicate with employees and constantly
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update them on organisational matters; conflict resolution is practised the
organisation’s policies are applied satisfactorily; and there are good physical
working conditions. These findings not support similar research (Al-Dosary 2004;
Abdelkarim 2001b).
It is incumbent on private sector employers to foster appropriate workplace
cultures (Section 9.3.2); that the transitory nature of the workforce over time will
weaken the organisational culture through lack of commitment. Corporations
currently rely on line management to gain appropriate productivity, or organisational
engagement, from their employees. However, without greater attention to HRM
programs to support policies, the establishment of a core of skilled and knowledgeable
employees necessary to maintain corporate vigour in the marketplace will not occur. It
is mandatory that to maintain organisational engagement, line management has the
appropriate programs, including recruitment and promotion by performance measures,
affirmative action, an appropriate reward system, training, and flexible working
conditions. Moreover, managers should avoid the prevalent tokenism where UAE
workers are placed in subsidiary roles to meet Emiratisation quotas, and develop
innovative means to manage UAE workers effectively (Mellahi 2007). HRM policies
and programs need focus on organisational objectives, including Emiratisation, and to
be internally consistent (Huselid et al. 2005). Organisational culture factors are
discussed at s.9.4.1.
Career development was explained as the second variation after organisational
culture in the private sector, while career development was an insignificant variable in
the public sector. This study found a positive relationship for corporate participants
between career development, and training and development; there was a significant
direct effect (β=.171) on training and development. Thus, a high regard by employers
for staff career development was found to effect engagement in training and
development, supporting prior research in this regard (Jain 2005; Abdelkarim &
Ibrahim 2001; Chen et al. 2006; Boxall & Purcell 2003).
As career development is accrued human capital, gained through qualifications,
experience and lifelong learning, which is returned through employment,
recommendations for this factor of organisational engagement follow
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• The recommended employment organisation tasked with career orientation
for those entering employment and those requiring promotion is an
excellent potential source of information and further education for career
planning and this aspect should be incorporated into the Emiratisation
initiative (Chilton 2007)
• Career planning is an excellent indicator of organisational engagement
and private HRMs should incorporate career planning in a remuneration
package, rewarding an employee, including UAE nationals, with
assistance of finance and time off from work, upon attaining performance
targets (on extending current initiatives, such as the UAE annual Career
Fair)
• For the individual a general degree, such as is widely used in Europe and
USA, and us now being implemented in Australia as the Melbourne Model,
allows flexibility in future learning to follow trends as new career paths
open. Careers usually span several jobs in several organisations, and care
should be taken in reaching an impasse early in a career by being
overspecialised. Using personal and professional networks to source
trends and plan career paths requires the establishment of weak social
capital bonds, which could be set up through public funding, especially of
value to women. (Author).
9.4.6 Age
Of the variables, age negatively impacted organisational engagement by public
sector employees; older employees are less engaged with their organisations.
Nevertheless, young UAE national employees aged 20 to 25 years display less
organisational engagement initially, and then become involved with the organisation
as both their experience and their ages increase. The cohorts of 26 to 30 years and 31
to 40 years had the highest level of organisational engagement, then after 50 years of
age, UAE national employees’ organisational engagement slipped slightly. This
performance profile reflects the maturation of the employee and dedication to the
organisation as responsibilities are accepted and a career path opens, and subsequent
decline in interest as career opportunities and trust diminish. An increase of one grade
point of age will result in an average decrease of at least b=-.063 (see Table 8.20) in
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organisational engagement. However, this result does not agree with the findings of
Boon et al. (2007) that older employees had higher organisational engagement.
Research findings to improve organisational engagement for those over 45 years
include job enrichment, training, and performance monitoring (Nankervis et al. 2005,
Ntatsopolos 2001, Bakker 2005).
In UAE’s public employment, ensuring performance levels of workers over 50
years of age presents a challenge (see Section 8.3.1). Recommendations of this study
are:
• Maintaining performance levels in older workers is crucial, given the
average age of the community, as these experienced employees have the
necessary organisational knowledge and skills to transfer to younger,
inexperienced workers (Extrapolating on the Shell Intilaaqah-Abu Dhabi
training and mentoring program)
• Provision of mentoring to new staff, continuous training, project work
and lifelong learning opportunities in other fields are the means by which
this knowledge and experience can be tapped (Emirates Today 2007).
These results provide decision makers and employers with strategies for
improving organisational engagement through application of the defined factors that
factors constitute the variables for this study; however, other factors to improve
productivity for employees can be the basis of further research.
9.5 Research Question 4 Emirati and Non-nationals’ Work Attitudes
Findings of differing perceptions of Emiratis in the two business sectors are
discussed at Section 9.3. As Emiratis were the focus of the study, the perceptions of
non-nationals were not sought. Yet the differences are profound, as the nationals are
competing against world-class skills in any given job description. Previous research
questions lay the grounds for this, the last are of comparison. Structural impediments,
private sector indifference and expatriate superiority in employability and not least,
cost and efficiency, are all barriers to UAE youth entering the job market.
Emiratis’ attitudes to work are not that of the non-national labour force, in fact
Emiratis’ perceptions and the statistical evidence are that at present the private sector
is effectively barred to them. Remuneration, at market rates that do not cover the cost
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of living in UAE, is a deterrent. The unofficial business language, English, is a
deterrent, intensified by the difficulty of matching skills and experience with that of
the expatriate workforce. The transitory nature of the workforce is a deterrent for
young Emiratis embarking on a career, as there is no stability also among the
executive and line management; management is performance-driven and time-driven
for their end-of-contract bonuses. Even taken Emiratisation that is disconnected from
economic, social, organisational and psychological forces is a deterrent. Emiratis,
once in a job, find little support for their largely token positions and frequently leave,
remaining unemployed until they acquire a job in the stable public service.
The non-nationals’ view of Emirati employees is perceived through management
responses in the first survey. To place and keep nationals in the labour force,
government financial contributions, establishing an employment coordination centre
and regular remuneration reviews are found to be important considerations. Emiratis
are regarded as status-driven rather than focussing on corporate objectives. Concern
of career prospects outweighs their performance standards, which are of a different
level to their colleagues. Products of their education system, nationals prefer not to
use their initiative and are happier in a rigid hierarchical management system, with set
job descriptions, reporting structures and traditionalist environment, thus the
preference again for the public service. Emiratis adhere to the set policies and
practices for their jobs, they do not seek efficiency or high productivity, the goals of
the private sector.
This study differs from most the mantra of findings in the literature. Due to the
nature of this broad quantitative analysis and its timeliness and mindful of current
economic surges in the GCC countries, particularly UAE, comparison of outcomes is
not direct. The supremacy of preference for the public sector is now not complete;
study participants find training improved and equal opportunity more accepted in the
private sector. With further support from the government, Emiratisation principles are
being adopted. Although there is no data on remuneration, high living costs and the
commensurate necessary rises in pay may have partly met UAE’s nationals’
expectations of their worth. Education standards are also rising; local graduates are
becoming fluent English speakers and, through their contributions in the workplace,
becoming more influential with their local knowledge and connections through the
fabric of Emirati society.
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Thus, there is some evidence that, whilst still on the opposite ends of a work
attitude continuum, Emiratis and non-nationals are at least finding common ground,
salary, working environment and principles of fairness. These are signs of maturation
in the workplace, and thus the economy. Financial and logistic pressures, plus the
expectations of the population, should accelerate government reassessment of the
effects of its structural barriers.
9.6 Summary of Research Outcomes
Human, social and organisational capital are increasingly recognised as
strategies for sustainable corporate competitive advantage (Dakhli & de Clercq 2004).
Using this framework, the research explores conceptualisations relating to the
workplace factors widely perceived to impact the employability of Dubai’s UAE
nationals; any sector differences in analysis of these variables, characteristics of
Emiratis’ work attitudes, and differences in attitudes with non-nationals. Whilst to
assist comparison the questions were commensurate with those of previous
researchers, there were differences in the outcomes.
From a human capital perspective, this study finds that organisations should
align with UAE goals and best corporate practice and commit to their employees’
continuing development (Wan 2007; Budhwar and Mellahi 2006). In particular, the
public sector could take a training role to enable public sector employees to transfer to
a senior role in the private sector. In corporations, a program of transferring staff also
transfers information, culture, and knowledge, so that representatives from each sector
become familiar with the issues and opportunities of the other.
In terms of social capital, three variables were found to be significant in both
sectors: trust, gender inequality and wasta. Prior studies showed that these variables
are significantly important for improved performance, particularly trust (Davis &
Landa 1999; Ferres et al. 2004; Joseph & Winston 2005).
Gender inequality continues to marginalise women, and this is nowhere more
evident than in the labour force. The results show that gender discrimination is
practiced in the public sector regardless of unenforced UAE decrees to the contrary.
Further studies in the private sector should determine the extent of this discrimination.
These results correspond with findings of sexual discrimination from Australia, USA,
UK, Canada and other parts of the world (Konrad et al. 2000; Reitman & Schneer
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2000; Valian 1998). Thus, gender discrimination in UAE, in terms of earnings and
managerial positions, occurs throughout the world (Adam 2003).
The practice of wasta among young UAE nationals in the private sector
continues, underscoring their belief that family connections in job finding are more
responsive than the process of securing a job in open competition, confirming
previous results (Whiteoak et al. 2006; Hutchings & Weir 2006). This result also
concurs with international studies, where performance measures were not the criteria
for reward for well-connected employees, but rather, the strength of their connections
dictated salary levels (Tu et al. 2006).
Organisational culture, career development and remuneration are factors found
statistically significant in both sectors under organisational capital. A large body of
literature shows the importance of organisational culture and its effect on job
satisfaction (Pascale 1985; Denison 1990; Van der Post et al. 1998; Deborah & Paul
2000). These results are generally consistent with prior studies both in the GCC and
advanced economies. These aspects of career and workplace improvements are highly
recommended as inducements to improve performance, that is, Emiratis’ engagement
with the organisation.
Of the constructs of capital theory, and the variables derived from them, the
findings of this research are that the social capital construct is superior to human
capital dimensions to instruct change in Emiratisation. Within capital theory, social
capital dimensions of trust, bonding, and linking relationships are found to enhance
job-seeking and career growth (Grootaert 1998; Stone, Grey & Hughes 2003).Whilst
the human capital construct explained Emiratis’ education, these variables are largely
beyond the domain of a national seeking a career; an education was achieved but it
lacked rigour, thus educational standards were lacking which impacted employability.
Organisational capital, whilst relevant for employee remuneration, workplace
environment, employer trust and career, is not relevant for the Emirati’s initial
standard of employability, and under Emiratisation the employer is placed in a
position of accepting an employee whose attributes do not match the standard of those
already employed. Thus, the societal aspects of the wider UAE population form the
defining structure for this research.
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9.7 Summary of Recommendations
Social capital, with its progressive and regressive forms of trust and wasta, its
strong familial bonded framework used for unearned jobs, and its weaker connective
networks define the structure of this research. It is supported by organisational capital,
particularly organisational culture and its subsets of trust, career prospects and salary;
and to a lesser extent, human capital with Emiratis’ inadequate education standards
and inability to grow through career prospects and appropriate salary.
The theme, or content, of this research is to address factors found to contribute to
the unique UAE situation of having one national in every twenty workers in UAE.
Recommendations, as attributed above, and flowing from these factors are
summarised under.
Education
1. The prime recommendation is that the UAE redirects its curricula to job-
ready career streams, beginning as generalised problem-solving skills early
in secondary school; restricts entry to low job opportunity courses; and
redirects arts curricula to incorporate work skills, such as English fluency,
media or marketing.
2. Ministry of Education forms a consultative committee of educators’ and
employers’ representatives (both sectors) to determine current and future
skills requirements, based on reliable statistics.
3. Ministry of Education determines all classroom performance standards to
reflect current educational practices of enquiry and problem-solving. Work
experience modules included from age 15 years.
4. Vocational education and technical training integrated to offer
apprenticeships and traineeships to raise technical skills for Emiratis to
replace non-national tradespeople.
5. Scholarships to best practice international educational institutions available
to all UAE candidates who reach the entry requirements of such
institutions, to maintain relevance for Emiratis’ knowledge base.
Affirmative Action
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6. Remove all discriminatory decrees and enforce equal opportunity.
7. Establish a tripartite organisation: advocate for women’s rights in society,
including health and childbearing; pursues gender awareness and equal
opportunity for women in employment; and has a judicial function
including investigative and implementation powers.
8. Public organisations to establish an equal opportunity (EO) office per
workplace: gender awareness programs for all employees including
executives; assess all organisation policies and programs to determine
discrimination; regular reports direct to organisational head.
9. Public sector organisations to report annually on gender statistics:
recruitment, promotions, transfers, dismissals and resignations; UAE
women to take up a 5 per cent cumulative number of positions in each
leadership rank (managers and executives) per year per workplace.
10. All Emirati women employees to have maternity leave of 12 months’ full
pay, guaranteed return to their job, given that colleagues’ promotions have
raised job content; family leave provision for career duties.
Public Sector Alignment
11. A cooperative committee of employers facilitates a structured exchange of
key disciplines between the sectors, with these individuals retaining their
positions and conditions. Key employees to disseminate timely
information, skills and strategies from sector to sector, promoting the work
values of each sector.
12. Remove lifetime employment in the public sector, offering redundancy to
ageing workers, and time-specific contracts to new entrants to fill those
places. Offer private sector contracts to experienced public servants,
guaranteeing their conditions and a return to the workplace they left.
13. Superannuation to be extended to all Emiratis, managed by one
organisation for both sectors, and contributed to by all employers of
nationals (5% of salary) and national employees (percentage based on age).
Change existing superannuation rights for public sector to meet universal
conditions in future, preserving all existing rights.
284
Work-readiness
14. Foster expectations of careers in Emirati children that their future
qualifications will be equal to those of non-nationals. These expectations to
be supported at secondary school where non-national corporate agents
advise children regarding career opportunities.
15. Unemployed Emiratis be supported financially and through additional
education and training until they are settled in a job.
Trust
16. Similar to the Ministry of Education’s consultative committee for skills
needs, establish a committee of stakeholders to determine future directions
for specified professions, para professions and trades in UAE; board directs
educational organisations in provider standards and work readiness levels,
employers commit to provide annual work experience and intake levels,
and experienced resources for educational workshops and career days.
17. Establish a working conditions organisation to set minimum working
conditions and pay for all employees in specified professions, para
professions and trades.
18. Establish a conciliation and arbitration commission to manage employee
and employer complaints.
19. Use the stakeholder committee to negotiate lifelong learning provision by
universities and trades schools, using employers’ facilities to transfer
information about current practices to university staff and research findings
to employers; based on lifelong learning, establish an Emirati mentoring
network through employers and education providers to draw Emiratis
through skills and leadership levels.
Minimise Wasta
20. Amend the Companies Law to allow foreign majority ownership of UAE’s
organisations, maintaining Emiratisation programs.
21. Establish an arbitration commission with the powers to investigate and
manage complaints of wasta; enforce transparent recruitment and
285
promotion practices from all employers; conduct awareness programs;
publish wasta incidents investigated and the outcomes.
Remuneration
22. Public sector remuneration and working conditions are frozen until they
reach at least fair market value determined by the working conditions and
remuneration commission.
23. Part of the working conditions and pay commission establishes base rates
across UAE business sectors for selected jobs and disciplines, premiums
paid upon defined performance levels based on tasks and responsibilities,
not time in the job.
24. Labour Law is modified to encourage part time work and flexible working
hours, initially for defined positions and for those with family
responsibilities; a complaints group is set up under the working conditions
and pay commission to adjudicate disputes.
25. Key job description holders (disciplines) are transferred between the
sectors to impart current knowledge.
26. Emiratis on sub-standard incomes defined by the pay commission are
temporarily paid by the commission to reach that level, together with an
education or training program to reach the defined level.
Training and Development
27. The consultative committee of educators’ and employers’ representatives is
tasked with career orientation for new employees and those requiring
promotion is an excellent potential source of information and further
education for career planning and this aspect should be incorporated into
the Emiratisation initiative.
28. Private HRMs should incorporate career planning in a remuneration
package, rewarding an employee, including UAE nationals, with assistance
of finance and time off from work to study upon attaining performance
targets.
286
29. A generalist degree allows flexibility in future learning. Personal and
professional networks to be set up with public funding, especially of value
to women.
Ageism
30. Maintaining performance levels in older workers is crucial, as these
experienced employees have the necessary organisational knowledge and
skills to transfer to young inexperienced workers.
31. Older workers to be retrained to train and mentor new staff; undertake
project work and lifelong learning opportunities in other fields.
Emiratisation
UAE is a country where government is absolute and Islamic-based, Shari’a and
secular law are practised by different jurisdictions, where the days of a weekend
differ, and where prayer times occur through the workday (Section 4.2.6). In the
private financial sector, Moslems refrain from dealing in interest, arguably the
mainstay of global financial institutions. Taxes are not paid by GCC citizens; although
expatriates and visitors pay tax, Moslems pay tithes, zakat, through a different system.
Zakat collections are employed for Moslem welfare (Section 2.4). Thus the
government accedes to two conflicting orders, globalisation and Shari’a, each of
which has its legislation, regulation, institutions, and practices. With regard to its
traditionalist past, the government is moving toward a modern society, for example
encouraging women to earn a living and become more independent.
Until just a few decades ago, the regime of globalisation and its corporations
took its oil and gas and left the legal and social aspects of the GCC countries
relatively to their own devices. However, oil revenues were long used by the GCC to
provide civil and Islamic necessities: health, education, security, and other matters
pertaining to Islam. The last few decades witnessed an arguably unique transition for
UAE from emerging economy to a nation where the per capita GDP is on par with
those of leading West European nations. Its generosity with oil revenues and its
moderate foreign policy stance allow the UAE to play a vital role in the affairs of the
region.
Thus Emiratisation can be regarded as a clash of cultures. With their deep family
connections and Islamic certitudes, its dominant youth population are divided by a
287
recent traditionalist past where globalisation did not impact Islam, to a new reality
where they are part of one of the most prosperous nations on earth. As for all youth,
the transition from study to the workplace is difficult; for Emiratis, it surpasses this
rite of passage to encompass a transition from a nuturing culture to one of rampant
competition. There has to be an adjustment process.
For the Emiratisation program to be more effective, a long-term strategic plan
should incorporate these recommendations. Findings of this study on education,
training and development, employment quotas, recruitment and selection, and career
development for UAE nationals are strategic change initiatives. Employers in both
sectors should attend conferences to explore the significant role of organisational
culture, trust, remuneration, gender inequality, trust and wasta on UAE nationals’
behaviour, and the subsequent outcomes. Best practice work ethics and practices,
modified to suit UAE conditions should be adopted. The private sector in particular
can improve the retention rate of UAE nationals by addressing existing barriers to
UAE career development.
9.8 Limitations and Further Research
These findings cannot be generalised to all UAE organisations, as best practice
firms were selected for this study. The greater focus on these firms was due to the fact
they already possess a high number of UAE nationals, thus facilitating the present
research’s aim which is to identify working conditions conducive to improving
Emiratisation performance.
Further, these findings differ in content and, arguably, in degree due to
differences in the size of studies and methodology. Previous studies by Tanmia (2003)
and Abdelkarim (2001) used qualitative analyses and therefore differ in outcomes.
The absence of international academic literature regarding implications of localisation
strategies places certain limitations on current research.
As stated, the limitations of this study relate to its methodology and scope. In
terms of methodology, the approach chosen was a quantitative data analysis based on
sample responses from seven organisations. The inclusion of samples from more
organisations may have improved representation of the population. The conceptual
288
framework of the study was based on three constructs: human, organisational and
social. Incorporating factors other than governmental, that were external to the
organisations, may influence the interactions of variables and produce changes in the
results. This study’s sample of five private organisations is not representative of past
studies, which studied the private sector as a whole. Additionally, corporate
Emiratisation practices have changed since 2002 due to government initiatives. The
main survey did not seek to explore, in depth, Emiratisation from an Islamic
perspective.
In terms of scope, it is clear that the sole use of quantitative data analysis is not
sufficient to approach the topic of Emiratisation. Impacts from the UAE economy,
government policy and the GCC environment, which are all instrumental in drawing
out aspects and conclusions. Similar studies in other UAE states are of use to confirm
these findings and detect sectoral trends in work practices and the success of the
government’s renewed vigour in establishing Emiratisation. Other comparative
studies can be extended to GCC countries that face similar labour issues to the UAE.
This study is particularly beneficial to employers of UAE nationals, academic
researchers studying Emiratisation issues and policy makers.
The participants in this study were UAE national male and female employees
from seven organisations, five from the private sector, and two from the public sector
in Dubai. This may limit the generalising of the results to the public sector.
Although comprising a limitation to the study, the alternative sampling of all
non-working nationals was not practical, given the time constraints of the research.
The design of the questionnaire did not capture scale items relevant to the
performance indicators of both sectors in Dubai. A further study using regression
analysis should include more scale items (variables) to capture the performance
indicators (dependent variables).
The present conceptual framework comprises direct interactions between three
constructs (personal, organisational and social factors) and the organisation (both
sectors). Future studies could explore interacting variables (internal and external to
the organisation) that affect the performance of UAE national employees.
Further research is encouraged for an integrated capital framework, particularly
social capital dimensions, to capture the greater range of factors impacting
289
organisations in their pursuit of Emiratisation. Less ambitious empirical research is
required to test the recommendations of this thesis, particularly in regards to change
initiatives on employers’ attitudes toward Emiratis, and issues of employee
performance.
9.9 Conclusion
And thus the end to this study. It is a quantitative analysis, which draws
statements and recommendations from the data. It is a comprehensive analysis from
seven organisations to identify and relate the factors that contribute to localisation.
The present research defines the aspects of the work that are of concern to UAE
nationals: workplace culture; pay; sexism; the amorphous word trust and its counter,
wasta. The overriding feature continues to be the absence of Emiratis working in
organisations that legally require Emirati ownership, and the pay-related dualism of
the Emirati and the GCC labour markets. Structural initiatives to alleviate the
dysfunction of this dual system include increased foreign ownership, commissions to
establish and monitor working conditions and arbitrate disputes, a minimum wage, a
cooperative committee to plan for future skills needs and to set standards on
qualifications; implemented transparent recruitment and promotion procedures and an
equal opportunity commission with judicial powers.
These issues stem from the fact that the UAE opened itself to the world economy
just a few decades ago, and its growth in a stable environment is subject to few
government constraints. By the nature of growth, standards and limitations appear,
legislation and decrees are revisited and enforced, and communications open
internally and externally. The population also matures and, with higher standards
becoming the norm, embraces the new lifestyle and agitates to remove impediments to
enjoying it. It also appears that UAE experiences similar workplace advantages and
disadvantages as the rest of the world, though arguably to a different degree and with
different avenues of redress. Its transitory population is its great divider from other
economies; few countries even approach the overwhelming numbers of foreigners that
make up the overall UAE population. Yet the country also boasts the highest per
capita GDP in the world, which is proving to be sustainable, given its rapid
diversification from oil and gas into the services industry.
290
Problems of affluence are relatively rare in the literature. As a thesis, this work is
the pinnacle of this writer’s academic achievements; it also holds the promise of
relatively small steps for a maturing economy setting the pace for future studies on its
successful outcomes.
I offer this work to my supervisors and my examiners, with respect and regard.
291
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Appendices
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Appendix 1 Ethic Approval Letter
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Appendix 2 Invitation Letter for Key Informants
Victoria University School of Management PO Box 14428 Melbourne City MC VIC 8001 Australia Telephone: (03) 9688 5058 Facsimile: (03) 9689 4272 Dear Sir/ Madam,
I would like to invite you to be part of a study into increasing Emirates participation of the United Arab Emirates in the workforce. This study intends to develop and identify the obstacles as perceived by Emirate in the workforce. Taken in your consideration that there are around 2.4 million non-national employees or (91 % of the total of the UAE labor force). Conversely, Emirates employees comprise a tiny minority of the workforce, about 1-2 % in the private sector. The objective of this study is to develop a comprehensive strategy, which will result in greater job opportunities for the United Arab Emirates Nationals resulting in their increased participation in Dubai labor force. Furthermore, it will identify the social and work barriers faced by Emirates employees. However, This study will focus on three factors, which include: 1) human capitals, 2) organisational capitals and, 3) social capitals. Analysis of theses factors will help researcher to identify the study’s objective and to develop a comprehensive strategy. The outcome of the research will help Dubai organisations in general, and Emirates, in particular for creating sustainable job opportunities for UAE National labor force in a more economical and educated environment.
Consent Form for Subjects Involved in Research
I,…………………………………………………… of …………………………….. Certify that I am at least 18 years old* and that I am voluntarily giving my consent to participate in the study entitled “Structural Barriers to Emiratisation: Analysis and Policy Recommendations” being conducted at Victoria University of Technology by: Jasim Al Ali, PhD student.
I certify that the objectives of the study, together with any risks and safeguards associated with the procedures listed hereunder to be carried out in the research, have been fully explained to me by: Jasim Al Ali and that I freely consent to participation involving the use email or call me of these procedures.
I certify that I have had the opportunity to have any questions answered and that I understand that I can withdraw from this study at any time and that this withdrawal will not jeopardise me in any way. I have been informed that the information I provide will be kept confidential.
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Signed: .................................................} Date: .................... Witness other than the researcher:} Signed:...................................................} Date: ....................
Appendix 3 Invitation Letter for Participants
Victoria University School of Management PO Box 14428 Melbourne City MC VIC 8001 Australia Telephone: (03) 9688 5058 Facsimile: (03) 9689 4272 Date/ Month/ Year Dear Potential Participants,
I am undertaken a research project entitled “Structural Barriers to Emiratisation: Analysis and Policy Recommendations” as part of my PhD at Victoria University. This project is under the supervision of professor Michael Muetzelfeldt and Dr. Himanshu Shee and intends to develop and integrated a comprehensive strategy for increasing Emirates participation in the United Arab Emirates in Dubai workforce.
For the purpose of this research, a questionnaire has been developed to identify these obstacles as perceived by Emirates in the workforce. Analysis of these obstacles will form the basis to researcher and will help to recommend solutions, which will help to identify the study’s objective and if possible eliminating these obstacles to Emiratization in the workforce.
I would like you to spend around 20-30 minutes filling the attached survey, to explore and obtain the information on your interests in and expectation of the barriers that facing Emirates in the workforce. Your participation to this survey will be highly significant. All information provided will be strictly confidential and used for the purpose of this study. The result will be presented in a comprehensive form, thus, your anonymity is guaranteed.
Please complete the questionnaire and return back to me at your earliest possible convenience, no later than / / 2005
I thank you in advance for your anticipated cooperation and participation in this study. If you have any questions, please feel free to email me by [email protected] or call me by 0061413070820. Sincerely yours, Jasim Al Ali PhD Student Any queries about your participation in this project may be directed to the researcher (Name: Jasim Al Ali: ph. (0413070820). If you have any queries or complaints about the way you have
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been treated, you may contact the Secretary, University Human Research Ethics Committee, Victoria University of Technology, PO Box 14428 MCMC, Melbourne, 8001 (telephone no: 03-9688 4710).
Appendix 4 Pilot Survey
A. Personal Data
Please respond to the following:
a) Sex: Male___ Female___
b) Age: ____
c) Nationality: ___________
d) Qualification you hold: PhD Ms Bs Diploma High School
e) Degree obtained From___________________
f) Current occupation level_____________________
g) Work Experience: ____ Year
B. Emiratisation
1) What is the approximate size of total workforce in your organisation?
a. Less than 10 b. 10-49 c. 50-199 d. 200-499 e. 500 and above
2) How many UAE Nationals are employed in your organisation? (Please Tick one box)
a. None b. 1-9 c. 10-49 d. 50-99 e. 100-199 f. 200 and above
3) How many staff does your organisation employ for the Emiratisation process?
a. 1-4 b. 5 –9
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c. 10-19 d. 20 and above
4) Does your organisation have a written policy or program for Emiratisation?
a. Yes ( ) b. No ( )
5) If not what do you think are the reasons? ______________________________________________________________________________________________________________________________________
6) If UAE Nationals comprise less than 10% of the total number of the organisation, what do you think are the reasons? ______________________________________________________________________________________________________________________________________
7) In your opinion, which of the following are the main reasons preventing UAE Nationals from participating in the workforce?
Please use this key for the five possible responses to each factor
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importance
1 2 3 4 5 a. Lack of experience/ training/ skills b. Lack of motivation c. Lack of trust d. Lack of communication skills or interpersonal skills e. Lack of English language f. Other (please specify)
8) In your view, which of the following are effective for increasing the retention of
UAE Nationals?
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importance
1 2 3 4 5 a. Contribution towards training and other employment costs of UAE Nationals employees
b. Ensure reasonable cultural awareness balance in the workforce c. Implement quotas for employment of UAE Nationals d. Create a special unit responsible for the recruitment and development of UAE Nationals
e. Work placements for UAE Nationals students from school and college f. Implement tax for those organisations that do not follow quotas for the UAE Nationals employment
g. Revision of salary and incentive system on a regular basis. h. Provision for increased technical and language training for UAE Nationals during employment
Other (please specify)
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9) If UAE Nationals comprise over 20 % of the total number of employees in your organisation, could you please describe what kind of strategies you have employed to achieve this? ______________________________________________________________________________________________________________________________________
C. Recruitment and Retention 10) When you consider recruiting UAE Nationals which of the following are the most
important factors influencing your decision?
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importance
1 2 3 4 5 a. Education /qualification/skills b. Experience c. References d. Age e. Gender f. Other (please specify)
11) Which of the following points do you think are the main reasons why UAE Nationals are under represented or comprise 2 % of the manpower in the private
sector?
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importance
1 2 3 4 5 a. Working on Thursday b. Long working hours c. Low wage and benefits d. Working a split-shift e. No career development prospects f. Little opportunity for promotion and training g. Family resistance h. UAE Nationals are discriminated against i. Non-nationals resistant to pass on their knowledge and experience
j. Other (please specify)
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12) What are the three most difficult challenges (regarding hiring Emirates) currently
facing the human resource development of your organisation?
Please use this key for the five possible responses to the three factors Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree OF importance
1 2 3 4 5 1) 2) 3)
13) Could you please suggest three policies that the government should apply to firms that do not comply with the Emiratisation program?
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importance
1 2 3 4 5 1) 2) 3)
14) Do employees in your organisation work with one straight shift or a split shift?
a. Straight shift ( ) b. Split shift ( )
15) How much overtime or extra hours do UAE Nationals and non-nationals work in a week?
UAE Nationals Non-nationals a. None b. 1-4 c. 5-9 d. 10 and above e. Other (please specify)
16) Do you think UAE Nationals like to work overtime?
a. Yes ( ) b. Not sure( ) c. No ( )
17) Do you think non-nationals like to work overtime?
a. Yes ( ) b. Not sure c. No ( )
18) If your answer to question (17) is yes could you please explain why? _______________________________________________________________________________________________________________________________________________________________________________________________________________
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D. Compensation and benefits package
19) How satisfied are UAE Nationals with the following factors of their job in your organisation?
Very satisfied Satisfied Neither Dissatisfied Very dissatisfied
(1) (2) (3) (4) (5)
Degree of satisfaction
1 2 3 4 5 a. Amount of pay compared to other organisations b. Sense of achievement they get from the work c. Chance to have their ideas listened to d. Opportunity for promotion e. Annual leave entitlement f. Strategy for achieving their career goal g. Amount of hours worked in a week
20) How satisfied are non-nationals with the following factors of their job in your organisation?
Very satisfied Satisfied Neither Dissatisfied Very dissatisfied
(1) (2) (3) (4) (5)
Degree of satisfaction
1 2 3 4 5 a. Amount of pay compared to other organisations b. Sense of achievement they get from the work c. Chance to have their ideas listened to d. Opportunity for promotion e. Annual leave entitlement f. Strategy for achieving their career goal g. Amount of hours worked in a week
21) What kind of strategies would you recommend /suggest that could help to encourage non-
national employees to train and pass their knowledge to UAE nationals in the workforce? ________________________________________________________________________________________________________________________________________________________________________________________________________________________
E. Culture
22) Are UAE Nationals satisfied working in a culturally diverse environment in your organisation? (Please Tick one box)
Very satisfied Satisfied Neither Dissatisfied Very dissatisfied
23) Have you ever tried to solve problems that have occurred between UAE Nationals and non-
nationals? a. Yes ( ) b. No ( )
24) If your answer is yes could you please explain the reason(s) that led to the problem?
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________________________________________________________________________________________________________________________________________________
25) Could you please explain how it was solved? __________________________________________________________________________________________________________________________________________
F. Education and training
26) What is the educational level demanded for UAE Nationals in your organisation?
a. Secondary/ Technical School b. Diploma c. Higher diploma d. Undergraduate degree e. Post graduate degree
27) Following graduation from any of the above do you think that UAE Nationals are
adequately prepared for the workforce?
a. Yes ( ) b. No ( ) 28) If your answer is no then what strategy would you recommend/ suggest that could
help them be competitive? ____________________________________________________________________________________________________________________________________
29) During the last 12 months, how much training has your organisation provided for UAE
Nationals?
a. None b. Once c. Two times d. Three to five times e. More than Five times
30) Do you think that if given further opportunity for study the participation rate of UAE
Nationals in your organisation would increase? a. Yes ( ) b. Not sure ( ) c. No ( )
31) Presuming that there is a plan for increasing UAE Nationals in your organisation, please list the three elements that you consider to be most important.
Very important Important Somewhat important Not important No opinion
(1) (2) (3) (4) (5)
Degree of importanc
1 2 3 4 5 1) 2) 3)
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THANK YOU FOR YOUR TIME AND COOPERATION, AND BE ASSURED OF THE CONFIDENTIALITY OF YOUR RESPONSES AND THAT IT WILL
ONLY BE USED FOR MY PHD RESEARCH WORK Appendix 5 Main Survey
SURVEY
Structural Barriers to Emiratisation: Analysis and Policy Recommendations
Overview
This questionnaire has been designed to identify the problems that encounter UAE national’s
manpower. The information provided to us will explain the role of employers on the extent of
assistance in respect of increasing the participation of UAE nationals in the work in their
country. Since you are the only person who is able to provide a clear picture about the way in
which you practice your career. Therefore, you are kindly requested to answer openly and
frankly, and your answers will be kept strictly confidential.
Thank you very much for giving us the opportunity and cooperating with us, and we
appreciate the assistance, which you provide to us and the organisation for which you work to
complete this research.
Instructions for Completing this Survey 1) Please answer all the survey questions to the best of your ability.
2) The written answers have been numbered opposite to each of the statements contained in
the questionnaire by using the numbers from 1 to 5; kindly complete the questionnaire by
CIRCLING around the number of the answer that suits each statement.
3) The questions contained in the questionnaire may not allow you to write some of the
comments, which you desire to show on your position, or the organisation for which you
work, or about yourself. Therefore, kindly write any comments that you desire to add in
the space intended for this purpose.
Definitions
1) Organisation: the word “organisation” in this survey is used to refer to the organisation
for which you work and which may be a company, governmental department, or body, or
enterprise or establishment.
4) Wasta: refers to conducting nepotism or intercession as well as the person who plays this
role.
5) Culture: is the joint life style between a group of individuals including their joint
backgrounds, social behaviour, thoughts and how they communicate with each other.
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Thank you for your assistance in conducting this research project
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Part 1: About Work Life
1= Strongly agree 2= Agree 3= Neutral 4= Disagree 5=Strongly
disagree
Statement 1 2 3 4 5 1. My experience and skill were important for joining the workforce 2. The importance of English language in my job cannot be underestimated 3. My education has provided me with adequate skills for joining the workforce 4. I have good physical working conditions (total time, shift, good ventilation and
lighting, adequate work space) in this organisation
5. English is the biggest problem preventing me from participating effectively from gaining promotion in my organisation
6. I am satisfied with the way promotions are given out in this organisation 7. My health has not suffered as a result of working for this organisation 8. I would be very happy to spend the rest of my career with this organisation 9. My job does give me enough time for family and social activities 10. My job requires me to do many different tasks at work, using a variety of skills
and talents.
11. I am satisfied with this organisation’s salary structure 12. I am an important part of this organisation 13. Frequently, I think of quitting my job 14. I am satisfied with organisation policies and practices toward employees 15. Overall, I am satisfied with the progress I have made toward meeting my goals
for developing new skills
16. I feel satisfied with the way in which the organisation’s policies are applied 17. I do not feel emotionally attached to this organisation 18. I trust management to look after my career interests 19. In general, I trust this organisation to keep its promises or commitments to me
and other employees.
20. I am satisfied with the similarity of salary paid among departments in this organisation
21. My work is interesting and challenging in this organisation 22. I am satisfied with the way employees are informed about organisation
policies
23. Overall, I am satisfied with the success I have achieved in my career. 24. English is the biggest problem preventing me from being competitive among
non-nationals in my organisation
25. I am satisfied with the way these policies are administered by this organisation 26. I am satisfied with my current salary 27. I trust people I work with to lend me a hand if I need it. 28. I am satisfied with the chances for advancement in my job 29. My organisation expects me to be fluent in English language 30. Favouritism is not evident in making recruitment decisions in my organisation
31. My organisation values skill and experience when recruiting and promoting employees
I would like to know how much you agree or disagree with each of the following statements relating to
your job. Please circling the number, which best indicates your opinion about each of the following
statements
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32. Overall, management are supportive of cultural difference in my organisation 33. My organisation has provided me with training opportunities enabling me to
extend my range of skills and abilities
34. My organisation does what it can to ensure the well being of its employees 35. People in this organisation can say what they want without fear of punishment 36. My organisation supports my attempts to acquire additional training or
education to develop my career
37. My organisation provides tasks that give me the opportunity to develop and strengthen new skills
38. My organisation is committed to the training and development of its employees 39. People in my organisation are encouraged to make suggestions for improvement
in our work
40. There is opportunity to discuss my training and development requirements with my organisation
41. I believe employees really care about each other in this organisation 42. There is a sense of being a part of a family in this organisation 43. My manager constantly updates me with relevant organisation information 44. My organisation cares about whether or not I achieve my career goals. 45. This organisation has a poor future unless it attracts better managers 46. Management here does a good job of communication with employees 47. In my organisation, conflicts are resolved to the satisfaction of those concerned 48. Employees in my work unit are like a family 49. My organisation supports employees with the balancing of work and family
responsibilities
50. In order to get a really good job, friends or family members in high positions are needed
51. UAE nationals have sufficient experience and skills to do their jobs well 52. When it comes to finding a really good job, who you know is more important
than what you know.
53. UAE nationals need more technical training to compete with non-nationals 54. Wasta is important in personal life 55. Overall, organisations which allow wasta are less effective than organisations
that prohibit it
Part 2: Gender Inequality
1= Strongly agree 2= Agree 3= Neutral 4= Disagree 5=Strongly disagree
Statement 1 2 3 4 5 1. Women lack the skills and ability for management positions in this organisation 2. Women are not competitive enough to be successful in this organisation 3. To achieve a high position in this organisation, a woman has to sacrifice some of
her femininity
4. My organisation’s policies and practices hinder women’s career development 5. Training opportunities and career progression are limited and very slow for
In this section, we would like to ask you about the differences between job attainment levels of men and
women. What do you consider to be the primary reasons for the lack of women in management positions?
Please circling the number, which best indicates your opinion about each of the following statements
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women in this organisation 6. Men and women have the same employment opportunities in this organisation 7. Traditional Arab/Islamic societies maintain that first and foremost, women should
prepare themselves for the domestic career of being a wife and mother.
8. The possibility of pregnancy makes employers reluctant to hire women in management positions
9. The lack of a professional woman’s network creates a major void for women aspiring to a professional managerial position
10. On average, a woman who stays at home all the time with her children is a better mother than a woman who works outside the home.
11. Cultural differences in the perception of power and authority in UAE are an important factor explaining women’s exclusion from leadership
12. Employers in my organisation feel that employing females is a short-term investment because females are known to leave, after short periods of employment, for family reasons.
Part 3: Demographic Information
Finally, we would like to know just a little about you so we can see how different types of people feel
about the issues we have been examining
1) Gender:
1. Male 2. Female
2) Which of the following categories describes………
Your Years of Experience
in this organisation Your Age Current status
1 years to below 5 years 20-25 years Single
5 years to below 10 years 26-30 years Married 10 years to below 15 years 31-40 years Divorced 15 years to below 20 years 41-50 years Widowed 20 years to below 25 years 51-60 years 25 years or more 61+ years
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3) Please select one from the following that best describes your current job title and education.
Job title Education level
Managing director No formal education
Chief Executive Officer Primary school
General Manager Secondary/technical
hool
Administrative Diploma
Clerical administrative/ Sale and service Higher Diploma
Others (Please specify):
Bachelor degree
Postgraduate degree
Others (Please specify):
4) Where did you achieve the highest level of education?
UAE GCC* Middle East Europe USA Australia
(*GCC: Gulf Cooperation Council)
6) In what range is your monthly salary In UAE Currency (Derham)
Less than 2,000 2,000-2,999 3,000-4,999 5,000-7,999 8,000-10,999
11,000-14,000 15,000-19,000 20,000-24,999 25,000-34,999
35,000 and above
7) Total number of training courses you have taken for that last 12 months?
1 2 3 4 5 6 7 8 9
10 times and above
8) Which sector would you prefer to work for? Public Sector Private Sector
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Would you like to receive a copy of the results of this study? Yes No
(If yes, please provide your preferred email or postal address)
Thank you very much for taking the time to complete this survey. Your help in providing
this information is greatly appreciated. If there is anything else you would like to tell us
about please do so in the space provided below.
Thank you for your time and co-operation in completing this survey
Jasim Ahmed Al-Ali
PhD student
Faculty of Business and Law
School of Management
Victoria University
Tel: +61413070820
E-mail: [email protected]
Professor Michael Muetzelfeldt
Faculty of Business and Law
School of Management
Victoria University
Tel: +61396885308
E-mail: [email protected]
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Appendix 5
Main Survey (Arabic Version)
المسح الحواجز الهيكلية للتوطين ، تحليل السياسات والتوصيات
نبذة
توضح المعلومات وسوفتواجه القوى العاملة المواطنة، للتعرف على المشكالت التى االستبيانهذا تصميمتم
مساعدة بشأن زيادة مشارآة مواطني اإلمارات العربية المتحدة المقدمة لنا التعرف على دور أرباب العمل حول مدى ال
ك حيات فيها الكيفية التى تمارس القادر على تقديم صورة واضحة عنونظرا ألنك الشخص الوحيد في العمل ببالدهم،
به من يوسوف يتم الحفاظ على السرية التامة لما ستدل ،العملية، لذا يرجى التكرم باالجابة بكل صراحة وامانة
.اجابات
والتعاون معنا، مع وافر التقدير للمساعدة التى تقدمها لنا انت والمنظمة التى الفرصةلك منا جزيل الشكر على اتاحة
. البحث إلتمام هذاتعمل بها
التعليمات الخاصة باستيفاء هذا االستقصاء
.طاعالرجاء االهتمام باإلجابة على جميع أسئلة االستبيان على قدر المست )1
الى 1باستخدام األرقام من االستبيانتم ترقيم االجابات المكتوبة امام آل عبارة من العبارات التى يضمها )2
.عبارة تناسب آلدائرة حول رقم االجابة التى بوضع االستبيان باستيفاءيرجى التكرم لذا ، 5
ات التي ترغب في االدالء بها عنقد ال تسمح لك األسئلة التي يضمها االستبيان بكتابة بعض التعليق )3
تعمل لديها، أو عن نفسك، لذا يرجى آتابة أية تعليقات ترغب في اضافتها في وظيفتك، أو المنظمة التى
.المساحة المخصصة لذلك
التعريفات
تستخدم آلمة المنظمة في هذا المسح لالشارة الى المنظمة التى تعمل لديها والتى قد تكون : المنظمة )1
.رآة، أو دائرة حكومية، أو هيئة، أو مشروع، أو مؤسسةش
.تشير الى القيام بالواسطة أو الشفاعة وآذلك الشخص الذي يقوم بهذا الدور: الواسطة )2
هي أسلوب الحياة المشترك بين مجموعة من األفراد بما يشمل خلفياتهم المشترآة وسلوآهم : الثقافة )3
.واصلون بها مع بعضهم البعضاالجتماعي وأفكارهم، والكيفية التي يت
.نشكرآم على ما قدتموه من عون الجراء هذا المشروع البحثي
337
عن الحياة العملية : 1الجزء
غير موافق = 5غير موافق = 4 محايد= 3 موافق= 2 فق بشدةامو= 1
بشدة
بشدة موافق غير فق بشدةامو
عباره 1 2 3 4 5 خبرتي ومهارتي من العوامل الهامة لاللتحاق بالعملآانت .1 ال يمكن التقليل من أهمية اللغة االنجليزية في عملي .2 حصلت من خالل دراستي على المهارات الكافية لاللتحاق بالعمل .3 اجمالي ساعات العمل، الورديات، ( أتمتع بظروف عمل جيدة في هذه المنظمة .4
)لجيدة واالضاءة ،المكان المالئم للعملالتهوية االلغة االنجليزية هي أصعب المشكالت التى تحول دون مشارآتي بشكل فعال .5
والترقي في المنظمة التى أعمل بها انا راض عن أسلوب ترقية العاملين في هذه المنظمة .6 صحية نتيجة العمل لدى هذه المنظمة تلم أعاني من مشكال .7 باقي حياتي المهنية في هذه المنظمة سيكون من دواعي سروري أن أمضي .8 في لقضائه مع العائلة وممارسة األنشطة ايسمح لي عملي بالحصول على وقت آ .9
االجتماعيةيتطلب عملي القيام بالعديد من المهام المختلفة في العمل باستخدام مهارات ومواهب .10
متنوعة لرضا عن هيكل الرواتب المطبق في هذه المنظمةأشعر با .11 أمثل جزءا هاما في هذه المنظمة .12 أفكر في ترك وظيفتي اغالبا م .13 أشعر بالرضا عن سياسات وممارسات المنظمة تجاه العاملين .14 بصفة عامة، أشعر بالرضا عن التقدم الذي أحرزته نحو تحقيق ما أهدف اليه من .15
مهارات جديدهاآتساب ية التى تطبق بها سياسات المنظمةفأشعر بالرضا عن الكي .16 ال أشعر باالرتباط العاطفي بهذه المنظمة .17 أثق في قيام االدارة برعاية مصالحي الوظيفية .18 بصفة عامة، أثق بأن هذه المنظمة تفي بوعودها والتزاماتها نحوي ونحو العاملين .19
االخرين أشعر بالرضا عن تشابه الرواتب التى تدفع للعاملين في ادارات هذه المنظمة .20 العمل الذي اقوم به في هذه المنظمة ممتع ويتسم بالتحدي .21
أشعر بالرضا عن الكيفية التى يتم بها اخطار العاملين بسياسات المنظمة .22 في حياتي العمليةبصفة عامة، أشعر بالرضا عن النجاح الذي حققته .23 اللغة االنجليزية هي أآبر المشكالت التي تحول دون قيامي بمنافسة األجانب في .24
المنظمة التى أعمل بها أشعر بالرضا عن الكيفية التي تدار بها هذه السياسات من قبل المنظمة .25 أشعر بالرضا عن راتبي الحالي .26 ن معي سوف يقدمون لي يد العون اذا ما احتجت الى أثق بأن االشخاص الذين يعملو .27
المساعدة في عملي حصلت عليه التقدم الذيأشعر بالرضا عن .28 تتوقع مني المنظمة التي أعمل لديها أن أجيد اللغة االنجليزية .29 محسوبية في اتخاذ قرارات التوظيف بالمنظمة التي ليس هناك دليل على وجود .30
أعمل بها منظمتي تقدر المهارة والخبرة عند تشغيل العاملين وترقيتهم .31 بصفة عامة، تؤيد االدارة التعدد الثقافي بالمنظمة .32
ئرة على رقم أفضل اجابة في هذا الجزء نود أن نعرف الى أي مدى توافق على العبارات التالية التى تتعلق بعملك ، يرجى وضع دا
توضح وجهة نظرك بشأن عبارة من العبارات التالية
338
قدمت لي منظمتي فرص التدريب التي مكنتني من توسيع مجال مهاراتي وقدراتي .33 تقوم منظمتي بما في وسعها لتحقيق رفاهية العاملين لديها .34 يمكن أن يعبر االفراد بهذه المنظمة عما يريدون دون الخوف من العقاب .35 ان منظمتي تدعم محاوالتي نحو اآتساب المزيد من التدريب أو التعليم آي انمي .36
من الناحية المهنية نفسيتكلفني المنظمة التي أعمل لديها بالمهام التي تمنحني الفرصة الآتساب المهارات .37
وتعزيزهاالجديدة تلتزم منظمتي بتدريب وتنمية العاملين لديها .38 قوم بهنن بالمنظمة على االدالء بمقترحاتهم لتحسين العمل الذي يالعام يتم تشجيع .39 تتوافر لي الفرصة لمناقشة متطلباتي التدريبية وحاجتي للتطوير مع المنظمة .40 اعاة بعضهم البعض في هذه المنظمةأؤمن بأن العاملين يقومون بالفعل بمر .41 هذه المنظمة بروح اإلنتماء إلىأشعر .42 على المعلومات المتصلة بالمنظمة دائمًايقوم مديري باطالعي .43 اذا آنت أحقق أهدافي المهنية أم البما تهتم منظمتي .44 للعمل لديها سيكون مستقبل هذه المنظمة سيئا اذا ما لم تستقدم مديرين أفضل .45 تقوم االدارة في هذه المنظمة بالتواصل مع العاملين على نحو جيد .46 يتم التوصل الى حل النزاعات في منظمتي بما يحقق رضا األطراف المعنية .47 عائلة واحدة أنهم يعتبر العاملون بالوحدة التى أعمل بها .48 التوازن بين مسئوليات العمل والمسئوليات تساعد منظمتي العاملين لديها على تحقيق .49
العائليةمن أجل الحصول على وظيفة جيدة بالفعل البد من الحصول على مساعدة األصدقاء .50
وأفراد العائلة الذين يحتلون مناصبا علياطنو دولة االمارات العربية المتحدة بالخبرة والمهارات الكافية لتأدية ايتمتع مو .51
يداوظائفهم جأآثر أهمية )من تعرف(حين يتعلق األمر بالحصول على وظيفة جيدة بالفعل، يصبح .52
)ماذا تعرف(من طنو دولة االمارات العربية المتحدة الى مزيد من التدريب الفني للتنافس ايحتاج مو .53
مع األجانب الواسطة امر هام في الحياة الشخصية .54 ت التي تسمح بالواسطة أقل فعالية من المنظمات التي ال تسمح بصفة عامة، المنظما .55
بها
عدم المساواة بين الرجل والمرأة: 2الجزء
غير موافق = 5غير موافق = 4 محايد= 3 موافق= 2 فق بشدةامو= 1
بشدة موافق غير فق بشدةاوم
عباره 1 2 3 4 5 آانت خبرتي ومهارتي من العوامل الهامة لاللتحاق بالعمل .56 ال يمكن التقليل من أهمية اللغة االنجليزية في عملي .57 ملحصلت من خالل دراستي على المهارات الكافية لاللتحاق بالع .58 اجمالي ساعات العمل، الورديات، ( أتمتع بظروف عمل جيدة في هذه المنظمة .59
)التهوية الجيدة واالضاءة ،المكان المالئم للعملاللغة االنجليزية هي أصعب المشكالت التى تحول دون مشارآتي بشكل فعال .60
والترقي في المنظمة التى أعمل بها
من وجهة نظرك ما هي االسباب . رأةفي هذا القسم ، سوف نطرح عليك بعض االسئلة حول االختالفات بين مستويات تشغيل الرجل والمالرئيسية لنقص عدد السيدات في مناصب االدارة؟ يرجى وضع دائرة على رقم أفضل اجابة توضح وجهة نظرك بشأن آل عبارة من
.العبارات التالية
339
ية العاملين في هذه المنظمةانا راض عن أسلوب ترق .61 صحية نتيجة العمل لدى هذه المنظمة تلم أعاني من مشكال .62 باقي حياتي المهنية في هذه المنظمة سيكون من دواعي سروري أن أمضي .63 في لقضائه مع العائلة وممارسة األنشطة ايسمح لي عملي بالحصول على وقت آ .64
االجتماعيةالقيام بالعديد من المهام المختلفة في العمل باستخدام مهارات ومواهب يتطلب عملي .65
متنوعة أشعر بالرضا عن هيكل الرواتب المطبق في هذه المنظمة .66 أمثل جزءا هاما في هذه المنظمة .67
المعلومات الديموغرافية: 3الجزء
واخيرا نود ان نعرف بعض المعلومات عنك آي نتوصل الى الكيفية التىي يفكر بها مختلف االشخاص في القضايا التى تقوم ببحثها
النوع )1
انثى .٢ ذآر . ١
.......الية تصفأي فئة من الفئات الت )2
سنوات خبرتك بهذه المنظمة عمرك الحالة االجتماعية حاليا
عام 25-20 أعزب سنوات 5سنة واحدة الى أقل من
عام متزوج قل من 5 26-30 سنوات 10سنوات الى أ
عامقل من 10 40-31 مطلق سنة 15سنوات الى أ عام أرمل من 15 41-50 سنة 20سنة الى أقل
عام من 20 51-60 سنة 25سنة الى أقل
ثر 61 عام فأآ 25 سنة أو أآثر
فضل وصف لمسماك الوظيفي الحالي والتعليم الذي حصلت عليها لي لتعطيياختيار اجابة واحدة مما يرجى) 3
المستوى التعليمي
المسمى الوظيفي
بالتعليم الرسمي لم يتم االلتحاق العضو المنتدب
ية آبير المسئولين التن المدرسة االبتدائفيذيين
الفنية/ المدرسة الثانوية مدير عام
مسئول اداري دبلوم
دبلوم عالي مبيعاتال/موظف مكتبي اداري
والخدمات
)تحديدها يرجى(مسميات أخرى
درجة البكالوريوس
ليادراسات ع
340
)تحديدها يرجى(اخرى
أعلى مستوى تعليمي لك؟ حصلت علىاين )4
استراليا الواليات المتحدة دول مجلس التعاوم الخليجي الشرق األوسط أوربا االمارات العربية المتحدة
؟)الدرهم(لة االمارات العربية المتحدة متقاضاه بعما هو معدل الراتب الشهري الذي ت) 5 9999-8000 7999-5000 4999 -3000 2999-2000 2000أقل من
فأآثر 35000 25000-34999 20000-24000 15000-19000 14000 -11000
ما هو العدد االجمالي للدورات التدريبية التي حصلت عليها في األشهر االثنى عشرة األخيره؟) 6 مرات فأآثر 10 9 8 7 6 5 4 3 2 1
م) 7 ا هو القطاع الذي تفضل العمل به؟ القطاع العام القطاع الخاص
ال نعم هل ترغب في الحصول على نسخة من نتائج هذه الدراسة
( )ت االجابة بنعم، برجاء آتابة عنوان البريد االلكتروني أو عنوان البريد العادي المفضل لديكاذا آان
آما ننظر بكل تقدير الى ما قدمته من مساعدة لتوفير هذه . االستبياننشكرك على اتاحة وقتك الستيفاء هذا
.آتابة ذلك في المكان المخصص له أدناه يرجىاذا آان لديك شيء اخر ترغب في االدالء به، و. المعلومات
االستبيانهذا انجازمعنا في للتعاون الفرصةنشكرآم على اتاحة
مايكل مويتسلفيلديت
341
آلية االعمال والقانون شعبة االدارة
جامعة فيكتوريا0061396885308: تليفون
بريد االلكترونيE-mail: [email protected]
جاسم ال علي طالب دآتوراه
آلية االعمال والقانون شعبة االدارة
جامعة فيكتوريا0061413070820: تليفون
بريد االلكتروني E-mail: [email protected]
Appendix 6 Statistical assumptions tests
Dependent variable
Independent variable
Residuals Normal Probability plot
O
rganisational engagement
Organisational culture
Regression Standardized Predicted Value420-2
Re
gre
ss
ion
Sta
nd
ard
ize
d R
es
idu
al
4
2
0
-2
-4
Scatterplot
Dependent Variable: Organisational engagement
Observed Cum Prob1.00.80.60.40.20.0
Exp
ecte
d C
um
Pro
b
1.0
0.8
0.6
0.4
0.2
0.0
Normal P-P Plot of Regression Standardized Residual
Dependent Variable: Organisational engagement
Career development Compensation English fluency Gender inequality Trust Social justice Wasta
342
Dependent
variable Independent
variable Residuals Normal Probability plot
T
raining and development
Organisational culture
Regression Standardized Predicted Value420-2
Re
gre
ss
ion
Sta
nd
ard
ized
Resid
ua
l4
2
0
-2
-4
Scatterplot
Dependent Variable: Professional development
Observed Cum Prob1.00.80.60.40.20.0
Exp
ec
ted
Cu
m P
rob
1.0
0.8
0.6
0.4
0.2
0.0
Normal P-P Plot of Regression Standardized Residual
Dependent Variable: Professional development
Career development Compensation English fluency Gender inequality Trust Social justice Wasta
343
Regression Standardized Residual420-2-4
Freq
uenc
y
120
100
80
60
40
20
0
Histogram
Dependent Variable: Professional development
Mean =6.13E-15�Std. Dev. =0.996�
N =930
344
Skewness and Kurtosis statistic
Variables Skewness Kurtosis Organisational culture 0.37 0.26 Career development 0.58 0.54 Compensation 0.09 -0.82 English fluency -0.51 -0.67 Gender inequality -0.24 0.30 Trust 0.45 -0.01 Social justice -0.25 -0.31 Wasta 0.56 -0.41
Regression Standardized Residual420-2-4
Frequ
ency
120
100
80
60
40
20
0
Histogram
Dependent Variable: Organisational engagement
Mean =1.13E-15�Std. Dev. =0.996�
N =930
Appendix 7 Letters To organisations
345
346
347
348
349
350
351
352
353
354
Appendix 8 Results of dummy variable in the hierarchical regression analysis
Correlations
organization
size Organisational engagement
Training and development Public Private
organization size Pearson Correlation 1 -.018 .051 .951(**) Sig. (2-tailed) .576 .119 .000 N 930 930 930 930Organisational engagement
Pearson Correlation -.018 1 .537(**) .029
Sig. (2-tailed) .576 .000 .373 N 930 930 930 930Training and development
Pearson Correlation .051 .537(**) 1 .107(**)
Sig. (2-tailed) .119 .000 .001 N
930 930 930 930
Public Private Pearson Correlation .951(**) .029 .107(**) 1 Sig. (2-tailed) .000 .373 .001 N 930 930 930 930
** Correlation is significant at the 0.01 level (2-tailed).
Model Summary
Model R R Square Adjusted R
Square Std. Error of the Estimate Change Statistics
R Square Change F Change df1 df2
Sig. F Change
1 .152(a) .023 .021 .67185 .023 11.023 2 927 .0002 .193(b) .037 .032 .66816 .014 4.425 3 924 .0043 .713(c) .508 .503 .47870 .471 220.030 4 920 .0004 .817(d) .667 .663 .39436 .160 109.900 4 916 .000
ANOVA
Model Sum of
Squares df Mean Square F Sig. 1 Regression 9.952 2 4.976 11.023 .000 Residual 418.435 927 .451 Total 428.387 929 2 Regression 15.879 5 3.176 7.114 .000 Residual 412.508 924 .446 Total 428.387 929 3 Regression 217.563 9 24.174 105.490 .000 Residual 210.823 920 .229 Total 428.387 929 4 Regression 285.930 13 21.995 141.426 .000 Residual 142.456 916 .156 Total 428.387 929
355
Coefficients(a)
Model Unstandardized
Coefficients Standardized Coefficients t Sig. Correlations
B Std. Error Beta Zero-order Partial Part 4 (Constant) 1.388 .133 10.451 .000 organization size -3.29E-
005 .000 -.187 -2.770 .006 -.018 -.091 -.053
Public Private .278 .094 .200 2.965 .003 .029 .097 .056 Gender -.028 .030 -.020 -.919 .358 .150 -.030 -.018 Education level -.009 .010 -.019 -.923 .356 -.022 -.030 -.018 Age -.047 .014 -.068 -3.265 .001 -.025 -.107 -.062 Gender inequity -.065 .022 -.066 -2.950 .003 -.339 -.097 -.056 Trust .108 .024 .133 4.436 .000 .650 .145 .085 social justice -.019 .019 -.023 -1.033 .302 -.121 -.034 -.020 Wasta -.067 .013 -.106 -5.198 .000 -.286 -.169 -.099 Organisational Culture .564 .031 .567 17.914 .000 .787 .509 .341 Career development .063 .026 .058 2.445 .015 .485 .081 .047 Remuneration .056 .016 .083 3.535 .000 .507 .116 .067 English Fluency .001 .012 .001 .042 .966 -.030 .001 .001
a Dependent Variable: Organisational engagement Model Summary
Model R R Square Adjusted R
Square Std. Error of the Estimate Change Statistics
R Square Change F Change df1 df2
Sig. F Change
1 .194(a) .038 .036 .86377 .038 18.196 2 927 .0002 .222(b) .049 .044 .85997 .012 3.738 3 924 .0113 .544(c) .296 .289 .74161 .247 80.617 4 920 .0004 .680(d) .463 .455 .64941 .167 70.951 4 916 .000
ANOVA(e)
Model Sum of
Squares df Mean Square F Sig. 1 Regression 27.152 2 13.576 18.196 .000(a) Residual 691.640 927 .746 Total 718.792 929 2 Regression 35.445 5 7.089 9.586 .000(b) Residual 683.347 924 .740 Total 718.792 929 3 Regression 212.800 9 23.644 42.991 .000(c) Residual 505.992 920 .550 Total 718.792 929 4 Regression 332.489 13 25.576 60.646 .000(d) Residual 386.303 916 .422 Total 718.792 929
356
357
Coefficients(a)
Model Unstandardized
Coefficients Standardized Coefficients t Sig. Correlations
B Std. Error Beta Zero-order Partial Part
4 (Constant) .645 .219 2.949 .003 organization size -7.00E-005 .000 -.307 -3.578 .000 .051 -.117 -.087 Public Private .674 .155 .375 4.362 .000 .107 .143 .106 Gender -.081 .050 -.046 -1.637 .102 .117 -.054 -.040 Education level -.035 .016 -.059 -2.228 .026 -.028 -.073 -.054 Age -.003 .024 -.003 -.112 .910 .039 -.004 -.003 Gender inequity -.066 .036 -.052 -1.820 .069 -.241 -.060 -.044 Trust -.005 .040 -.005 -.135 .892 .491 -.004 -.003 social justice -.006 .031 -.005 -.189 .850 -.068 -.006 -.005 Wasta -.004 .021 -.005 -.183 .855 -.149 -.006 -.004 Organisational Culture .693 .052 .538 13.362 .000 .653 .404 .324 Career development .227 .043 .161 5.318 .000 .471 .173 .129 Remuneration .010 .026 .011 .367 .713 .359 .012 .009 English Fluency .015 .020 .019 .731 .465 -.003 .024 .018
a Dependent Variable: Training and development
